TCREUR_Public/050530.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 30, 2005, Vol. 6, No. 105

                            Headlines

B U L G A R I A

EUROBANK AD: Sale to Piraeus Triggers Upgrade


C Z E C H   R E P U B L I C

AMERICAS INTERNATIONAL: Slips into Administration


F I N L A N D

DYNEA INTERNATIONAL: Outlook on Senior Notes Changed to Stable


G E R M A N Y

BACKWAREN VERTRIEB: Creditors Meeting Set July
BBL PEISSENBERG: Gives Creditors Until June to File Claims
DAIMLERCHRYSLER AG: Expects Chrysler Unit to Match 2004 Results
GLOBAL PERSONALSERVICE: Under Bankruptcy Administration
HEIZ SAN: Court Appoints Dr. Dirk Herzig Interim Administrator

IBM: Axing Fewer German Workers
IVC ROSCH: Weilheim Court Appoints Administrator
KLIMA-SCHWEISSTECHNIK: Creditors Meeting Set July
OBERLAUSITZER FUSSBODENTECHNIK: Falls into Bankruptcy
REWO LUX: Claims Verification Set July 26

STAMA STAHL: Creditors' Claims Due Next Month
WEBEREI H. & E.: Applies for Bankruptcy Proceedings
WILFRIED DUNKEN: Bankruptcy Proceedings Begin


G R E E C E

OLYMPIC AIRLINES: Bidders Down to Three


I T A L Y

AVIO SPA: Receives Lower-B Ratings from Fitch
GIANNI VERSACE: Downward Sales Trend Continues


L U X E M B O U R G

MILLICOM INTERNATIONAL: Raises Stake in Honduran Unit


N E T H E R L A N D S

ROYAL NUMICO: Senior Notes Offering Oversubscribed


P O L A N D

FSO: May Ink Stake Sale to AwtoZAZ This Week


R U S S I A

BALYK-LES: Undergoes Bankruptcy Supervision Procedure
CHEREPANOVSKIY AUTO-TRANS: Declared Insolvent
GORKOVSKIY: Dried Milk Factory Succumbs to Bankruptcy
KALUGA-AGRO-PROM-ENERGO: Declared Insolvent
NARAT-OIL-PRODUCT: Deadline for Proofs of Claim Set Next Month

OIL-GAS-SVAR-MONTAZH: Kaluga Court Names Insolvency Manager
OZINSKIY ELEVATOR: Succumbs to Bankruptcy
PLEM-REM-PRODUCTOR YUZHNOURALSKIY: Declared Insolvent
SIBERIAN MILK: Appoints V. Aleksandrov Insolvency Manager
SUVOROVSKOYE: Sets Deadline for Proofs of Claim Next Month


S P A I N

AUNA OPERADORES: Bidders Down to Two Groups
AUNA OPERADORES: Suitor Has Eyes on Two Subsidiaries


S W E D E N

SKANDIA INSURANCE: Bidder Downplays Interest


U K R A I N E

AKMA: Harkiv Court Opens Bankruptcy Proceedings
BUROVIK: Succumbs to Insolvency
CHAS-VS: Insolvency Manager Takes over Helm
NOVOROZDILSKIJ PLANT: Temporary Insolvency Manager Enters Firm
RIZNOPAK: Under Bankruptcy Supervision
STELLA: Bankruptcy Supervision Starts
TRIEM: Court Appoints Insolvency Manager


U N I T E D   K I N G D O M

3RD ANGLE: Members Final Meeting Set July
A1 LIMITED: Holds Final Creditors Meeting
ABACUS INSTALLATIONS: Final Creditors Meeting Set June
AH PLC: Liquidator's Final Report Out June 28
ALLIED DOMECQ: Put up or Shut up, Constellation Brands Told

ANGLO ABRASIVES: Meeting of Creditors Set June
BERRY PILING: Appoints Bond Partners Administrator
BLUEMOON FRUIT: Sets Members Final Meeting June
BOOTS GROUP: Healthcare Arm Attracts GlaxoSmithKline
CNS SUBSEA: Forced into Administration by Supplier

DARAY LIGHTING: Creditors Meeting Next Week
DART CORPORATION: Members Pass Winding-up Resolutions
DEBENHAMS FINANCE: Notes Redemption Plan a Negative Development
DRAKE & SON: Hires Coyne Butterworth & Chalmers as Liquidator
EDMONDSON LIFTING: Appoints Administrator from Bennett Verby

FG NUMBER: Final Members Meeting Set Third Week of June
GMAC COMMERCIAL: Not Affected by Parent's Downgrade
GOLDPORT DEVELOPMENTS: Calls in Phimore & Co. Administrator
I.B.S. SERVICES: Calls in Liquidator from Doyle Davies
IMPERIAL PUB: Creditors Meeting Set Thursday

JAYCEE FURNITURE: Names Tenon Recovery Administrator
JOSEPH WARD: In Administrative Receivership
JOSE PISCADOR: Winding-up Report Out June
KWELM: Creditors to Receive Increased Payout
LECO DEVELOPMENTS: Members Pass Winding-up Resolutions

LIONWELD KENNEDY: Administrators from Ernst & Young Move in
MANCHESTER NEON: Liquidator from Tomlinson Moves in
MARCONI CORPORATION: Wins Five-year Supply Contract from C&W
M. & B. BROAD: Members Pass Winding-up Resolution
MCARDLE ENVIRONMENTAL: Hires Liquidator from Smith & Williamson

MG ROVER: Collapse Will Leave Almost Nothing to Creditors
MG ROVER: 400 Ex-workers Get New Jobs; 800 Under Training
NETWORK RAIL: Chris Green to Join Board Next Month
NETWORK RAIL: Invests GBP50 Million in New Signaling Technology
NETWORK RAIL: Returns to Profit at Operating Level

PREMIER FOODS: Trading Picking up; Cost-cutting Moving Ahead
QUICK FRAME: Cattles Invoice Finance Appoints Receiver
REGUS GROUP: Trading in Line with Expectations
REINSURANCE ENTITY: Members Decide to Wind up Firm
RENTOKIL INITIAL: Shareholders Approve Reorganization

RENTOKIL INITIAL: Recommends 10% Increase in Annual Dividend
ROYAIR LIMITED: Appoints Begbies Traynor Administrator
STERLING CAPITAL: Members Hire Liquidators from Begbies Traynor
TC COOMBS: Creditors to Convene Late Next Month
TRAVEL-HOLIDAYS: Winding-up Hearing Set June

UNIQ PLC: Appoints Cadbury Executive as Director
VEOS UK: Sets Creditors Meeting Friday
WACTON LIMITED: Liquidator to Present Report Late June
WM MORRISON: Has New Group Finance Director
WM MORRISON: Like-for-like Sales in First 15 Weeks this Year Up


                            *********


===============
B U L G A R I A
===============


EUROBANK AD: Sale to Piraeus Triggers Upgrade
---------------------------------------------
Moody's Investors Service has upgraded Eurobank AD's long-term
foreign currency deposit ratings to Ba1, from B1, following its
acquisition by Piraeus Bank (Greece).  This action takes
Eurobank's rating to the ceiling for foreign currency deposits in
Bulgaria and accordingly carries a positive outlook.  The upgrade
concludes the review of the rating initiated on 26 January 2005,
when the proposed transaction was publicly announced by the two
banks.  Eurobank's Not-Prime short-term foreign currency deposit
ratings and E+ financial strength rating (FSR) are not affected
by this action.

Moody's upgrade is based on the high likelihood that Eurobank
would be supported by Piraeus Bank (rated Baa1/Prime-2/C-) should
it face difficulties.  In establishing this view, Moody's notes
Piraeus Bank's longstanding commitment to the Bulgarian market,
having been present since 1993 with its own branches, and its
large size and financial strength relative to Eurobank.  The
acquisition of 99.66% of Eurobank's shares by Piraeus Bank was
completed on 19 May 2005, following regulatory approvals in
Bulgaria and Greece.

In its ongoing assessment of Eurobank, Moody's will be
considering the possible positive impact that Piraeus Bank's
strategy and direct involvement could have on the bank's
operations and financial strength, and may take action
accordingly.

Eurobank is headquartered in Sofia, Bulgaria and at the end of
2004 had total assets of BGN427 million (EUR218 million).

CONTACT:  MOODY'S INVESTORS SERVICE CYPRUS LIMITED
          Limassol
          Mardig Haladjian
          Senior Vice President
          Financial Institutions Group

          Limassol
          George Chrysaphinis
          Asst Vice President - Analyst
          Financial Institutions Group

          For Journalists
          Phone: 44 20 7772 5456


===========================
C Z E C H   R E P U B L I C
===========================


AMERICAS INTERNATIONAL: Slips into Administration
-------------------------------------------------
The Czech Securities Commission (KCP) has placed Americas
International Brokers, a.s. under forced administration due to
serious deficiencies in its operation, Czech Happenings says.

"The company was breaking rules in dealing with clients, was not
meeting the capital adequacy requirement, did not properly
register clients' assets, and lacked an effective internal
control system," the commission said.

Zdenek Svancara was appointed administrator of AIB, which
suffered the fate of Sati, another brokerage declared bankrupt by
KCP recently.  AIB was granted a broker's license on December 12,
2000 and had a registered capital of CZK35 million.

CONTACT:  AMERICAS INTERNATIONAL BROKERS, a. s.
          Vaclavske namisti 62
          Praha 1
          110 00 Prague 1
          Phone: +420 222 210 000
          Fax: +420 222 210 022
          E-mail: info@aib.cz
          Web site: http://www.aib.cz/


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


DYNEA INTERNATIONAL: Outlook on Senior Notes Changed to Stable
--------------------------------------------------------------
Moody's Investors Service changed the rating outlook for the Caa2
senior notes rating of Dynea International Oy, a 100%-owned
subsidiary of Dynea Oy, to stable from negative.

The change in outlook reflects Moody's acknowledgement of:

(a) the improvement in operating cash flow generation, in
    particular in Asia and in North America, achieved through
    higher sales volumes and tight cost control, partly
    mitigating the negative effects of increasing raw materials
    prices;

(b) the pattern of ongoing supportive shareholders' actions as
    demonstrated by their commitment to inject EUR22 million of
    equity (which is approximately equivalent to the amount of
    interest its parent company, Dynea Oy, receives from owning
    45% of the company's outstanding bonds) over the 2005-2006
    period;

(c) the recently renegotiated bank covenants, allowing the
    company to draw under its revolving credit facility and the
    resulting enhanced liquidity level (EUR26 million in cash
    and EUR16 million available under the company's revolving
    credit facility) which should be sufficient to cover working
    capital swings; and

(d) the improving, albeit challenging, business environment in
    which Dynea operates with the additional benefit of a number
    of new operations (Asia) which have recently come on stream.

Moody's ratings continue to recognize the company's low margins
relative to other chemical companies, the impact that the
volatile raw material environment has on margins (in particular
methanol, urea and phenol), volume swings affecting revenues, the
competitive environment in which the company operates, especially
in Europe, and the cash outflows related to the company's capex
plans in Asia.  The rating agency further notes that whilst it
acknowledges the stabilizing impact of the recent renegotiation
of bank covenants, it cautions that future stepdowns in these
covenants could trigger a need for another round of negotiations
in 2006.

The stable outlook reflects Moody's expectation that Dynea's
operating performance will benefit from the improving business
outlook and the company's continued focus on its fixed costs.
Dynea's financial performance will, however, be constrained by
high leverage and tight liquidity (access to which will be
subject to compliance with financial covenants reset in January
2005 for the next two years).

Moody's would consider raising its ratings if the company's
EBITDA generation, its liquidity and the headroom under the bank
covenants materially were to improve, leading to a sustainable
improvement in the company's adjusted leverage to 6x (defined as
adjusted debt/adjusted EBITDAR with EBITDAR including the income
from share of associates).  Conversely, any deterioration in
Dynea's cash flow generation compared to 2004 or failure to meet
its bank covenants would likely result in a negative rating
change.

The Caa2 rating on the notes continues to reflect the relatively
high proportion of priority debt ranking ahead of the senior
notes and the potentially material losses for bondholders in a
distress scenario (bank debt represents around 57% of total debt
at year-end).

Ratings affected by this change in outlook are:

(a) The Caa2 rating on the EUR250 million in 12.25% senior notes
    of Dynea International Oy,

(b) The B3 senior implied rating for Dynea International Oy,

(c) The Caa2 senior unsecured issuer rating

Dynea International Oy is 100% owned by Dynea Oy and is a leading
formaldehyde resins producer domiciled in Helsinki, Finland,
generating EUR1,065 million in sales as of December 31, 2004.

CONTACT:  MOODY'S INVESTORS SERVICE LTD.
          London
          Arnaud Gravier
          Asst Vice President - Analyst
          Corporate Finance Group

          London
          David G. Staples
          Managing Director
          Corporate Finance Group

          For Journalists
          Phone: 44 20 7772 5456


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


BACKWAREN VERTRIEB: Creditors Meeting Set July
----------------------------------------------
The district court of Dresden opened bankruptcy proceedings
against Backwaren Vertrieb BWV GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 9, 2005 to register their
claims with court-appointed provisional administrator Bettina
Schmudde.

Creditors and other interested parties are encouraged to attend
the meeting on July 21, 2005, 11:00 a.m. at the district court of
Dresden, Saal D131, Olbrichtplatz 1, 01099 Dresden, 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:  BACKWAREN VERTRIEB BWV GMBH
          Rollmer Str. 18 in 02906 Niesky

          Bettina Schmudde, Administrator
          Konigstrasse 1, 01097 Dresden
          Web site: http://www.whitecaseinso.de


BBL PEISSENBERG: Gives Creditors Until June to File Claims
----------------------------------------------------------
The district court of Weilheim opened bankruptcy proceedings
against BBl Peissenberg GmbH & Co. KG Beschichtungs- und
Lackierzentrum on May 1.  Consequently, all pending proceedings
against the company have been automatically stayed.  Creditors
have until June 14, 2005 to register their claims with
court-appointed provisional administrator Hans G. Hanel.

Creditors and other interested parties are encouraged to attend
the meeting on July 5, 2005, 10:00 a.m. at which time the
administrator will present his first report of the insolvency
proceedings.  The court will also verify the claims set out in
the administrator's report during this meeting, while creditors
may constitute a creditors committee and or opt to appoint a new
insolvency manager.

CONTACT:  BBL PEISSENBERG GMBH & CO. KG BESCHICHTUNGS- UND
          LACKIERZENTRUM
          Hochreuther Str. 4 in 82383 Peissenberg

          Hans G. Hanel, Administrator
          Hauptstr. 37, 82380 Peissenberg
          Phone: 08803/63660
          Fax: 08803/636677


DAIMLERCHRYSLER AG: Expects Chrysler Unit to Match 2004 Results
---------------------------------------------------------------
Chrysler Group president Dieter Zetsche hopes to repeat its good
performance in 2004 this year.  In an interview Friday with Die
Welt, he said: "We are optimistic that we can do as well as in
2004 because of our new models and our cost structure."

Chrysler Group, which posted an overall operating profit of
EUR1.43 billion on sales of EUR49.5 billion last year, also aims
at increasing by about one million the sales of its Chrysler,
Jeep and Dodge brands from the 2.8 million units sold in 2004.
Mr. Zetche said the sales boost could materialize with the
launching of the Dodge brand in Europe, as he also counts on the
potential of the markets in China and Asia overall.

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


GLOBAL PERSONALSERVICE: Under Bankruptcy Administration
-------------------------------------------------------
The district court of Mannheim opened bankruptcy proceedings
against GLOBAL Personalservice GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 13, 2005 to register their
claims with court-appointed provisional administrator Stefan
Roth.

Creditors and other interested parties are encouraged to attend
the meeting on July 25, 2005, 10:30 a.m. at the district court of
Mannheim, 68159 Mannheim, Schloss, Westfluegel, 1. Stockwerk/Raum
232 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:  GLOBAL PERSONALSERVICE GMBH
          Contact:
          Waldemar Nuernberg, Manager
          Pettenkoferstr. 30, 68169 Mannheim

          Ritterstrasse 11, 10115 Berlin

          Stefan Roth, Administrator
          Bachstr. 5-7, 68165 Mannheim
          Phone: 0621/44004-0


HEIZ SAN: Court Appoints Dr. Dirk Herzig Interim Administrator
--------------------------------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against Heiz San GmbH & Co KG on April 27.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 8, 2005 to register their
claims with court-appointed provisional administrator Dr. Dirk
Herzig.

Creditors and other interested parties are encouraged to attend
the meeting on July 20, 2005, 10:15 a.m. at the district court of
Chemnitz, Saal 28, im Gerichtsgebaude Fuerstenstrasse 21, in
Chemnitz, 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:  HEIZ SAN GMBH & CO KG
          Fuerstenstrasse 54, 09130 Chemnitz

          Dr. Dirk Herzig, Administrator
          Promenadenstr. 3, 09111 Chemnitz
          Web site: http://www.schubra.de


IBM: Axing Fewer German Workers
-------------------------------
The number of job cuts at the German operation of U.S. computer
company International Business Machines Corp. (IBM) will be fewer
than announced, according to a spokesman.

German unions fear there are about 2,500 employees at risk in
Germany after the company announced worldwide restructuring plan
weeks ago.  A spokesman told Agence France-Presse the figure was
"clearly exaggerated."

"It should be decided by the end of June," said Rolf Schmidt, IBM
Germany's linkman with the unions.

Financial Times Deutschland earlier said the total job cuts would
be around 1,280.  Service union ver.di, meanwhile, said it must
be about 1,600; this includes 580 jobs already announced by IBM
Germany.  A substantial number of jobs will come from IBM
Business Services, which IBM has decided to close.  The
subsidiary has offices in Schweinfurt and Hanover.

IBM unveiled plans to cut 10,000 to 13,000 jobs worldwide as part
of the reorganization of its administrative networks in Europe.
IBM is trying to decentralize decision-making functions after
reporting sales decline in Europe in 2004.  Last month, IBM's
first-quarter sales fell 3% from a year earlier to US$22.9
billion.  According to Mark Loughridge, chief financial officer,
this was due partly on weakness in Germany, France and Italy.

CONTACT:  INTERNATIONAL BUSINESS MACHINES CORP.
          One New Orchard Road
          Armonk, NY 10504
          Phone: (914) 499-1900
          Fax: (914) 765-6021
          E-mail: ibm@equiserve.com
          Web site: http://www.ibm.com/


IVC ROSCH: Weilheim Court Appoints Administrator
------------------------------------------------
The district court of Weilheim opened bankruptcy proceedings
against IVC Rosch GmbH & Co. KG Industriegueter-Vertriebs-Center
on May 1.  Consequently, all pending proceedings against the
company have been automatically stayed.  Creditors have until
June 14, 2005 to register their claims with court-appointed
provisional administrator Dr. Robert Hanel.

Creditors and other interested parties are encouraged to attend
the meeting on July 5, 2005, 9:15 a.m. at which time the
administrator will present his first report of the insolvency
proceedings.  The court will also verify the claims set out in
the administrator's report during this meeting, while creditors
may constitute a creditors committee and or opt to appoint a new
insolvency manager.

CONTACT:  IVC ROSCH GMBH & CO. KG INDUSTRIEGÜTER-VERTRIEBS-
          CENTER
          Hohenweg 19 in 82335 Berg

          Dr. Robert Hanel, Administrator
          Hauptstr. 37, 82380 Peissenberg
          Phone: 08803/63660
          Fax: 08803/636677


KLIMA-SCHWEISSTECHNIK: Creditors Meeting Set July
-------------------------------------------------
The district court of Mannheim opened bankruptcy proceedings
against Klima-Schweisstechnik-Industrietechnik Guenter Kirsch
Gesellschaft mit beschrankter Haftung on May 1.  Consequently,
all pending proceedings against the company have been
automatically stayed.  Creditors have until June 13, 2005 to
register their claims with court-appointed provisional
administrator Peter Depre.

Creditors and other interested parties are encouraged to attend
the meeting on July 25, 2005, 11:00 a.m. at the district court of
Mannheim, 68159 Mannheim, Schloss, Westfluegel, 1. Stockwerk,
Raum 232 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:  KLIMA-SCHWEISSTECHNIK-INDUSTRIETECHNIK GUENTER KIRSCH
          GESELLSCHAFT MIT BESCHRANKTER HAFTUNG
          Contact:
          Volker Scheer, Manager
          Bernd Guenther Walter, Manager
          Walter-Bothe-Str. 16, 68169 Mannheim

          Peter Depre, Administrator
          O 4, 13-16, 68161 Mannheim
          Phone: 0621/12078-0


OBERLAUSITZER FUSSBODENTECHNIK: Falls into Bankruptcy
-----------------------------------------------------
The district court of Dresden opened bankruptcy proceedings
against Oberlausitzer Fussbodentechnik GmbH on April 29.
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 Albert Wolff.

Creditors and other interested parties are encouraged to attend
the meeting on July 18, 2005, 10:00 a.m. at the district court of
Dresden, Saal D131, Olbrichtplatz 1, 01099 Dresden, 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:  OBERLAUSITZER FUSSBODENTECHNIK GMBH
          Schafenbergstrasse 4 in 02625 Bautzen

          Albert Wolff, Administrator
          Weisseritzstrasse 3, 01067 Dresden
          Web site: http://www.WORAKO.de


REWO LUX: Claims Verification Set July 26
-----------------------------------------
The district court of Chemnitz opened bankruptcy proceedings
against REWO LUX GmbH on May 9.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until June 14, 2005 to register their claims with
court-appointed provisional administrator Olaf Kupke.

Creditors and other interested parties are encouraged to attend
the meeting on July 26, 2005, 12 noon at the district court of
Chemnitz, Saal 24, im Gerichtsgebaude Fuerstenstrasse 21, in
Chemnitz, 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:  REWO LUX GMBH
          Meeraner Strasse 102, 08371 Glauchau
          Contact:
          Rene Fleischer, Manager

          Olaf Kupke, Administrator
          Leipziger Strasse 58, 09113 Chemnitz


STAMA STAHL: Creditors' Claims Due Next Month
---------------------------------------------
The district court of Dresden opened bankruptcy proceedings
against STAMA Stahl und Maschinenbau GmbH Bautzen on April 29.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until June 15, 2005 to
register their claims with court-appointed provisional
administrator Jorg Spies.

Creditors and other interested parties are encouraged to attend
the meeting on July 27, 2005, 10:00 a.m. at the district court of
Dresden, Saal D131, Olbrichtplatz 1, 01099 Dresden, 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:  STAMA STAHL UND MASCHINENBAU GMBH BAUTZEN
          Edisonstr. 14 in 02625 Bautzen

          Jorg Spies, Administrator
          Lockwitzer Str. 17, 01219 Dresden
          Web site: http://www.pkl.com


WEBEREI H. & E.: Applies for Bankruptcy Proceedings
---------------------------------------------------
The district court of Heilbronn opened bankruptcy proceedings
against Weberei H. & E. Kaiser GmbH & Co. KG on May 1.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until May 31, 2005 to
register their claims with court-appointed provisional
administrator Gerhard Fichter.

Creditors and other interested parties are encouraged to attend
the meeting on July 7, 2005, 9:15 a.m. at the district court of
Heilbronn, 74072 Heilbronn, Rollwagstr. 10 A, Saal 4, EG 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:  WEBEREI H. & E. KAISER GMBH & CO. KG
          KOMPLEMENTARIN KAISER GMBH
          Contact:
          Helmut Kaiser, Manager
          Hofackerweg 1, 74259 Widdern

          Gerhard Fichter, Administrator
          Uhlandstr. 4, 74072 Heilbronn


WILFRIED DUNKEN: Bankruptcy Proceedings Begin
---------------------------------------------
The district court of Bielefeld opened bankruptcy proceedings
against Wilfried Dunken GmbH on May 11.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 21, 2005 to register their
claims with court-appointed provisional administrator Georg
Welslau.

Creditors and other interested parties are encouraged to attend
the meeting on July 12, 2005, 10:45 a.m. at the district court of
Bielefeld, Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal
4065, 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:  WILFRIED DUNKEN GMBH
          Kutenhauser Str. 200, 32425 Minden
          Contact:
          Wilfried Dunken, Manager

          Georg Welslau, Administrator
          Kleiner Domhof 2 - 4, 32423 Minden


===========
G R E E C E
===========


OLYMPIC AIRLINES: Bidders Down to Three
---------------------------------------
Three bidders remain in contention for Olympic Airlines, raising
the carrier's chances of survival, Reuters says.

The government is currently holding talks with the bidders, which
finance minister George Alogoskoufis refused to name.  The
finance minister has until June to wrap up talks.  In April,
around five groups submitted binding bids for Olympic Airlines.
They included local rival Aegean Airlines; German carrier DBA;
British group Klesch; Greek-American consortium Olympic
Investors; and Dutch investment fund Sure Estates.

The government is trying to dispose of the struggling carrier,
which posted a EUR23 million loss in 2003 to raise money to
reduce public debt.  The transport minister has said the sale of
Olympic Airlines is the carrier's last chance for survival.

CONTACT:  OLYMPIC AIRLINES S.A.
          96 Sygrou Ave.
          11741 Athens
          Phone: +30 1 9267221
          Fax: +30 1 9267858
          E-mail: olyair10@otenet.gr
          Web site: http://www.olympicairlines.com

          KLESCH & COMPANY LIMITED
          105 Wigmore Street
          London W1U 1QY
          Phone: +44 (0) 20 7493 4300
          Fax: +44 (0) 20 7493 2525
          E-mail: info@klesch.com
          Web site: http://www.klesch.co.uk

          DBA LUFTFAHRTGESELLSCHAFT MBH
          Terminalstrasse West,
          Terminal 1 Modul A
          85356 Munich, Munich Airport
          Phone: 0049 (0) 89 - 975 91 500
          Web site: https://cms.flydba.com

          AEGEAN AIRLINES S.A.
          31 Viltanioti St.
          145 64 Kifisia, Greece
          Phone: +30-210-62-61-700
          Fax: +30-210-62-61-900
          Web site: http://www.aegeanair.com


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


AVIO SPA: Receives Lower-B Ratings from Fitch
---------------------------------------------
Fitch Ratings assigned Italy-based Avio S.p.A. ratings of Senior
Unsecured 'B+' with Stable Outlook and Short-term 'B'.  Its
senior secured debt is assigned a 'BB' rating.  The agency has
also assigned ASPropulsion Capital B.V.'s EUR200 million 9.625%
senior notes due 2013 a 'B' rating, and Aero Invest 1 S.A.'s
EUR375 million floating-rate senior PIK notes due 2015 a 'B-'
rating.

"While Fitch recognizes the increase in total financial leverage,
which follows the issuance of Avio's Holdco PIK notes earlier
this year as well as the withdrawal of equity funded by such
issuance, cash-pay leverage levels are unchanged," says Michelle
De Angelis, Associate Director in Fitch's Leveraged Finance
group.

The Senior Unsecured 'B+' rating reflects Avio's established
market position within the European aerospace industry, globally
recognized technical expertise, long-standing client
relationships, strategic importance to the Italian government and
the long-term nature of the projects in which it participates.
These are offset by the company's relatively modest size,
leveraged capital structure, high exposure to the cyclical civil
aerospace industry, heavy customer concentration and the risk of
major contract reductions or delays.

The 'B' rating assigned to the senior notes reflects their
structural subordination in the capital structure, whereby a
significant level of obligations rank ahead of the notes.
However, they benefit from subordinated guarantees and
second-ranking pledges over the shares of Avio.  The three-notch
differential between the rating for senior secured debt and the
senior notes reflects the agency's view of the significant
disparity between potential recoveries for two asset classes in
the event of a forced restructuring or distress scenario.

The 'B-' rating assigned to the PIK notes reflects their deeply
structurally subordinated position.  In a distress scenario,
Fitch expects that recoveries for the PIK notes are likely to be
minimal given the level of obligations ranking ahead of them.

The 'BB' rating for the senior secured facilities reflects
Fitch's expectation that the senior lenders would achieve
superior recoveries relative to other creditors in a distress
scenario, given their contractual and structural seniority. Given
the debtor-friendly nature of the Italian insolvency regime,
Fitch expects that an out-of-court procedure involving a workout
or distressed sale would maximize recoveries.

While Avio's results in 2004 suffered as a result of lower
military, space and civil maintenance, repair and overhaul (MRO)
revenues, the improved performance of the rather more cyclical
civil aero-engine business offset the declines in the other units
to produce stable revenue at constant EUR/USD exchange rates.
The effect of the deterioration in FX rates resulted in an
overall 4.3% decline in revenues.  Results for Q1 2005 showed an
increase of EUR10 million in revenues to EUR281 million compared
to the same quarter in the previous year, and EBITDA increased
EUR2 million to EUR39 million, following a stabilization of
exchange rates.

Avio was free cash flow positive in 2004 and has generated
sufficient cash since its buy-out in 2003 to make prepayments
totaling an equivalent of EUR138 million.  Liquidity was adequate
at YE2004 with an undrawn revolving credit facility of EUR150
million and available cash in balance sheet of EUR32.5 million.
Senior cash-pay Fitch-adjusted leverage was 3.2x, and total
cash-pay Fitch-adjusted leverage 4.2x.  Total pro forma
Fitch-adjusted leverage, after accounting for the PIK notes, was
6.2x. Any upward rating movement would be contingent on, inter
alia, a reduction of at least 1.0x cash-pay leverage.

Avio is one of the largest Italian groups in the aerospace and
defense industry and one of Europe's leading producers of
components for aircraft engines and propulsion systems for space
launch vehicles.  Avio was bought from Fiat S.p.A. in July 2003
by the Carlyle Group and Finmeccanica S.p.A.

CONTACT:  FITCH RATINGS
          Michelle De Angelis, London
          Phone: +44 (0) 20 7417 3499

          Stefano Podesta
          Phone: +44 (0) 20 7417 4316

          Elisabetta Zorzi, Milan
          Phone: +39 02 87 90 87 213

          Media Relations:
          Julian Dennison, London
          Phone: +44 20 7862 4080


GIANNI VERSACE: Downward Sales Trend Continues
----------------------------------------------
Gianni Versace S.p.A. admits sales will continue to fall in the
succeeding years now that it has dropped the Versace Classic
women's and men's wear from its line.  The Italian fashion group
has disclosed it would only return to profit by 2007, according
to Il Sole 24 Ore.

Although retail sales of its autumn-winter collection rose by
more than 50% at the start of the year, the company expects to
report a higher net loss in 2004, Managing Director Giancarlo Di
Risio told the paper.  Sales for 2004 dropped to EUR320 million
from EUR403 million in 2003.

In December, the group decided to split its non-core assets from
its core fashion business amid efforts to rehabilitate its
business.  The company has been struggling since the death of
founder Gianni Versace seven years ago.

CONTACT:  GIANNI VERSACE S.p.A.
          Via Manzoni 38
          20121 Milan
          Phone: +39-02-760-93-1
          Fax: +39-02-760-04122
          Web site: http://www.versace.it


===================
L U X E M B O U R G
===================


MILLICOM INTERNATIONAL: Raises Stake in Honduran Unit
-----------------------------------------------------
Millicom International Cellular S.A. acquired additional shares
of its subsidiary Telefonica Celular S.A. (Celtel) in Honduras
from Motorola, Inc., bringing Millicom's ownership to two thirds
of the total outstanding shares.  Motorola is selling its entire
equity stake in Celtel.  The remaining Motorola stake in Celtel
will be acquired by local minority shareholders.

Marc Beuls, President and CEO of Millicom commented: "This
acquisition is part of our strategy for growth by increasing our
ownership of our existing operations.  Central America has seen
an acceleration of growth since the launch of GSM services and
has recently been one of our fastest growing operations.  We
believe the prospects in Honduras are excellent."

Millicom International Cellular S.A. (Nasdaq Stock Market: MICC,
Stockholmsborsen and Luxembourg Stock Exchange: MIC) is a mobile
telecommunications operator with cellular operations in Asia,
Latin America and Africa.  It currently has a total of 16
cellular operations and licenses in 15 countries.  The Group's
cellular operations have a combined population under license of
approximately 332 million people.

                            *   *   *

Millicom said earlier this month that the year 2004 was one of
the most successful in Millicom's history.  The Company started
seeing the full benefits of its successful balance sheet
restructuring in the previous two years.  It allowed Millicom to
take better advantage of the low mobile penetration in its
markets and to drive growth by combining higher capital
expenditure with a move to GSM technology in a number of key
markets.

CONTACT:  MILLICOM INTERNATIONAL CELLULAR S.A.
          75, route de Longwy
          L-8080 Bertrange, Luxembourg
          R.C.S. Luxembourg: B 40.630 -

          Marc Beuls
          President and Chief Executive Officer
          Phone:  +352 27 759 327
          Web site: http://www.millicom.com

          ANDREW BEST
          Investor Relations
          Phone:  +44 20 7321 5022


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


ROYAL NUMICO: Senior Notes Offering Oversubscribed
--------------------------------------------------
Royal Numico N.V. issued US$425 million senior notes through a
private placement in the United States of America.

The senior notes consist of four tranches with maturities of
seven, nine, ten and twelve years and provide Numico with an
excellent opportunity to diversify its capital structure and
further improve the company's overall debt maturity profile at
very attractive conditions.  The placement was substantially
over-subscribed with a diverse and high-quality investor base.
Closing is expected before the end of June 2005.

Jean-Marc Huet, CFO and member of Numico's Executive Board: "We
are very pleased with this U.S. private placement.  This
financing represents a further step in enhancing the flexibility
and diversification of Numico's capital structure.  The investor
response clearly exceeded our expectations and is a clear
reflection of the confidence that the capital markets have in
Numico."

Royal Numico is a high-growth, high-margin specialized nutrition
company with leading positions in Baby Food and Clinical
Nutrition and brings products to the market under the brand names
Nutricia, Milupa and Cow & Gate, among others.  The company
serves customers in over 100 countries and employs approximately
11,000 people (see also: http://www.numico.com).

CONTACT:  ROYAL NUMICO N.V.
          Corporate Communications
          Phone: +31 20 456 9077

          Investor Relations
          Phone: +31 20 456 9003


===========
P O L A N D
===========


FSO: May Ink Stake Sale to AwtoZAZ This Week
--------------------------------------------
FSO and Ukraine's AwtoZAZ is set to sign a contract regarding the
disposal of the Polish firm's 20% stake this week, despite
questions on the buyer's financial status.

Terms of the contract were examined by lawyers last week, Warsaw
Business Journal reported.  A lawyer representing AwtoZAZ, Lech
Zyzylewski, said: "The final wording of the deal may still be
changed."

Also, AwtoZAZ still needs to show the Treasury Ministry an
audited report of its financial situation after reports emerged
last week it is in the brink of bankruptcy.  A special commission
organized by Ukraine's prime minister, which includes
representatives of AwtoZAZ, had said changes in the tax systems
have increased car prices and consequently cut sales by 30%.

"Such information cannot be ignored.  We will definitely closely
examine the situation of the investor before signing the final
contract," Janusz Kwiatkowski, State Treasury spokesperson, was
quoted earlier as saying.

CONTACT:  DAEWOO-FSO MOTOR
          00-992 Warszawa
          Jagiellonska 88
          Web site: http://www.daewoo.com.pl


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


BALYK-LES: Undergoes Bankruptcy Supervision Procedure
-----------------------------------------------------
The Arbitration Court of Khanty-Mansiyskiy autonomous region has
commenced bankruptcy supervision procedure on timber industry
company Balyk-Les.  The case is docketed as A75-3358/2005.  Mr.
A. Drozdetskiy has been appointed temporary insolvency manager.

Creditors have until June 23, 2005 to submit their proofs of
claim to 628400, Russia, Tyumen region, Surgut, Energetikov Str.
1, Apartment 55.  A hearing will take place on July 25, 2005,
11:00 a.m. at the Arbitration Court of Khanty-Mansiyskiy
autonomous region located at 628400, Russia, Khanty-Mansiysk,
Lenina Str. 54/1, Hall 412.

CONTACT:  BALYK-LES
          628380, Russia, Tyumen region,
          Pyt-Yakh, Sovetskaya Str. 35

          Mr. A. Drozdetskiy
          Temporary Insolvency Manager
          628400, Russia, Tyumen region,
          Surgut, Energetikov Str. 1, Apartment 55
          Phone: (3462) 45-76-40, 45-73-21


CHEREPANOVSKIY AUTO-TRANS: Declared Insolvent
---------------------------------------------
The Arbitration Court of Novosibirsk region commenced bankruptcy
proceedings against Cherepanovskiy Auto-Trans (TIN 5440100809)
after finding the open joint stock company insolvent.  The case
is docketed as A45-4854/05-29/8.  Mr. A. Tyutyunnik has been
appointed insolvency manager.  Creditors have until June 23, 2005
to submit their proofs of claim to 633564, Russia, Novosibirsk
region, Maslyanino, Bazarnaya Str. 2.

CONTACT:  CHEREPANOVSKIY AUTO-TRANS
          633525, Russia, Novosibirsk region,
          Cherepanovo, Tsytsarkina Str. 40

          Mr. A. Tyutyunnik
          Insolvency Manager
          633564, Russia, Novosibirsk region,
          Maslyanino, Bazarnaya Str. 2
          Phone/Fax: 8-383-47-23-628


GORKOVSKIY: Dried Milk Factory Succumbs to Bankruptcy
-----------------------------------------------------
The Arbitration Court of Omsk region commenced bankruptcy
proceedings against Gorkovskiy (TIN 5512000210) after finding the
factory of dried milk insolvent.  The case is docketed as
K/E-119/04.  Mr. K. Kiselevskiy has been appointed insolvency
manager.  Creditors have until June 23, 2005 to submit their
proofs of claim to 644043, Russia, Omsk, K. Libknekhta Str. 35,
13th floor.

CONTACT:  GORKOVSKIY
          646600, Russia, Omsk region,
          Gorkovskoye, Zavodskaya Str. 2

          Mr. K. Kiselevskiy
          Insolvency Manager
          644043, Russia, Omsk region,
          K. Libknekhta Str. 35, 13th floor


KALUGA-AGRO-PROM-ENERGO: Declared Insolvent
-------------------------------------------
The Arbitration Court of Kaluga region commenced bankruptcy
proceedings against Kaluga-Agro-Prom-Energo (TIN 4027030056)
after finding the open joint stock company insolvent.  The case
is docketed as A23-1006/04B-10-27.  Mr. I. Smirnov has been
appointed insolvency manager.  Creditors have until June 23, 2005
to submit their proofs of claim to 248001, Russia, Kaluga, Post
User Box 308.

CONTACT:  KALUGA-AGRO-PROM-ENERGO
          Russia, Kaluga region,
          Voskresenskaya Str. 9

          Mr. I. Smirnov
          Insolvency Manager
          248001, Russia, Kaluga region,
          Post User Box 308


NARAT-OIL-PRODUCT: Deadline for Proofs of Claim Set Next Month
--------------------------------------------------------------
The Arbitration Court of Saratov region commenced bankruptcy
proceedings against Narat-Oil-Product after finding the limited
liability company insolvent.  The case is docketed as
A57-83B/05-12.  Mr. A. Maksyuta has been appointed insolvency
manager.

CONTACT:  NARAT-OIL-PRODUCT
          410600, Russia, Saratov region,
          Moskovskaya Str. 75

          Mr. A. Maksyuta
          Insolvency Manager
          413072, Russia, Saratov region, Marksovskiy region,
          Podlesnoye, Komsomolskaya Str. 88

          The Arbitration Court of Saratov region
          410031, Russia, Saratov region,
          Babushkin Vzvoz, 1


OIL-GAS-SVAR-MONTAZH: Kaluga Court Names Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Kaluga region has commenced bankruptcy
supervision procedure on limited liability company
Oil-Gas-Svar-Montazh.  The case is docketed as A23-458/05B-10-14.
Mr. M. Kim has been appointed temporary insolvency manager.
Creditors may submit their proofs of claim to 248016, Russia,
Kaluga region, Proletarskaya Str. 139, Post User Box 1331.

CONTACT:  OIL-GAS-SVAR-MONTAZH
          249095, Russia, Kaluga region,
          Maloyaroslavets, Zagorodnaya Str. 11

          Mr. M. Kim
          Temporary Insolvency Manager
          248016, Russia, Kaluga region,
          Proletarskaya Str. 139, Post User Box 1331


OZINSKIY ELEVATOR: Succumbs to Bankruptcy
-----------------------------------------
The Arbitration Court of Saratov region commenced bankruptcy
proceedings against Ozinskiy Elevator after finding the open
joint stock company insolvent.  The case is docketed as A57-261
B/04-12.  Mr. Y. Zimin has been appointed insolvency manager.
Creditors have until June 23, 2005 to submit their proofs of
claim to 300026, Russia, Tula, Ryzanskaya Str. 1, Office 608.

CONTACT:  OZINSKIY ELEVATOR
          413600, Russia, Saratov region,
          Ozinskiy region, Ozinki, 8th Marta Str. 38

          Mr. Y. Zimin
          Insolvency Manager
          300026, Russia, Tula,
          Ryzanskaya Str. 1, Office 608
          Phone/Fax: (0872) 35-66-43


PLEM-REM-PRODUCTOR YUZHNOURALSKIY: Declared Insolvent
-----------------------------------------------------
The Arbitration Court of Orenburg region commenced bankruptcy
proceedings against Plem-Rem-Productor Yuzhnouralskiy (TIN/KPP
5642007746/564201001) after finding the open joint stock company
insolvent.  The case is docketed as A47-13583/04-14GK.  Ms. T.
Samsonova has been appointed insolvency manager.   Creditors have
until June 23, 2005 to submit their proofs of claim to 460000,
Russia, Orenburg, Gaya Str. 23A.

CONTACT:  PLEM-REM-PRODUCTOR YUZHNOURALSKIY
          461423, Russia, Orenburg region,
          Sakmarskiy region, Svetlyj

          Ms. T. Samsonova
          Insolvency Manager
          460000, Russia, Orenburg region,
          Gaya Str. 23A


SIBERIAN MILK: Appoints V. Aleksandrov Insolvency Manager
---------------------------------------------------------
The Arbitration Court of Kemerovo region commenced bankruptcy
proceedings against Siberian Milk after finding the company
insolvent.  The case is docketed as A27-25563/2004-4.  Mr. V.
Aleksandrov has been appointed insolvency manager.  Creditors
have until June 23, 2005 to submit their proofs of claim to
650099, Russia, Kemerovo region, N. Ostrovskogo Str. 32, room
501-502.

CONTACT:  SIBERIAN MILK
          650070, Russia, Kemerovo region,
          Tukhachevskogo Str. 4

          Mr. V. Aleksandrov
          Insolvency Manager
          650099, Russia, Kemerovo region,
          N. Ostrovskogo Str. 32, Room 501-502


SUVOROVSKOYE: Sets Deadline for Proofs of Claim Next Month
----------------------------------------------------------
The Arbitration Court of Tula region commenced bankruptcy
proceedings against Suvorovskoye after finding the mine
corporation insolvent.  The case is docketed as A68-86/B-04.  Mr.
S. Noskov has been appointed insolvency manager.  Creditors have
until June 23, 2005 to submit their proofs of claim to 300600,
Russia, Tula, Zhavoronkova Str. 1, Office 507.

CONTACT:  SUVOROVSKOYE
          301430, Russia, Tula region,
          Suvorov, l-ta Makarova Square, 2

          Mr. S. Noskov
          Insolvency Manager
          300600, Russia, Tula region,
          Zhavoronkova Str. 1, Office 507


=========
S P A I N
=========


AUNA OPERADORES: Bidders Down to Two Groups
-------------------------------------------
The consortium of U.S.-based Apax Partners, and U.K.-based Cinven
and CVC Capital Partners has pulled out its bid for Auna
Operadores de Telecomunicaciones SA, said La Gaceta de los
Negocios Wednesday.

The remaining bidders are the consortium of Providence and
Carlyle together with U.S.' Blackstone and U.K.'s Permira, which
reportedly values Auna at EUR12 billion, and the group of
Kohlberg Kravis Roberts, Goldman Sachs and BC Partners with a
EUR12.5 billion offer.

Meanwhile, Spanish cable telecoms operator Ono is reportedly
proposing to buy Auna's fixed-line division, Auna TLC, for
EUR2.3 - EUR2.6 billion.

Potential buyers had only until Monday to submit their
non-binding offers.  Then, they were given a month to consider
placing a binding offer or pulling out from the sale talks, which
is being handled by U.S. investment bank Merrill Lynch.

CONTACT:  AUNA OPERADORES DE TELECOMUNICACIONES S.A.
          Paseo de la Castellana, 83-85
          28046 Madrid, Spain
          Phone: +34-91-202-41-00
          Fax: +34-91-202-51-71
          Web site: http://www.grupoauna.com


AUNA OPERADORES: Suitor Has Eyes on Two Subsidiaries
----------------------------------------------------
Amena and Auna TLC, subsidiaries of Auna Operadores de
Telecomunicaciones S.A., could receive separate offers from
venture capital firm Providence.

Last month, electricity groups Endesa and Union Fenosa, and
Spain's largest bank Santander Central Hispano confirmed they
started considering bids after a year of market speculation.  The
three firms control 83.5 percent of Auna.

Providence heads the list of investors, which include Spanish
cable operator Ono, interested in acquiring the fixed line
telecoms operator Auna TLC.

Meanwhile, mobile telecommunications operator Amena has
Blackstone, Permira and Carlyle as its other suitors.

Auna's weak position is attributed to its failure to acquire Ono
last year, and several investors' intentions to sell their
stakes.  The company has debt of EUR4.5 billion.

Earlier, the two energy groups backed the EUR12 billion-offer by
private equity groups Apax and CVC Capital Partners from the U.K.
and Blackstone from the U.S.

The Spanish government and Santander Central Hispano, which own
17.03 percent of Ono and 32.08 percent of Auna, were said to be
supporting Ono's bid.

CONTACT:  AUNA OPERADORES DE TELECOMUNICACIONES S.A.
          Paseo de la Castellana, 83-85
          28046 Madrid, Spain
          Phone: +34-91-202-41-00
          Fax: +34-91-202-51-71
          Web site: http://www.grupoauna.com


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


SKANDIA INSURANCE: Bidder Downplays Interest
--------------------------------------------
Friends Provident plc has set aside its interest in buying the
U.K. venture of Skandia Insurance Co., to focus on its growth
this year, according to Sharecast Friday.

Chief executive Keith Satchell said: "Our focus is on bedding
down the two acquisitions we have done and bedding down the life
and pensions business in the U.K. on an organic basis."

Friends Provident reportedly targets to increase overseas sales,
and plans to expand the business in Asia this year.

Meanwhile, Skandia is said to be pursuing three fronts in
selling its business, upon the advice of Morgan Stanley.  The
U.S. investment bank is understood to be preparing sales
memoranda for each of the insurer's three main businesses.

Nordea AB is believed to be looking at Skandia's Nordic
operations, while Old Mutual PLC of South Africa, wants to take
over the entire business.

A Skandia-Old Mutual merger would create an GBP8 billion cross-
border financial services group, one of the largest in the
business. However, Old Mutual's major institutional shareholders
are reportedly opposed to the idea.

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


=============
U K R A I N E
=============


AKMA: Harkiv Court Opens Bankruptcy Proceedings
-----------------------------------------------
The Economic Court of Harkiv region commenced bankruptcy
proceedings against AKMA (code EDRPOU 30320786) on February 2,
2005 after finding the limited liability company insolvent.  The
case is docketed as B-24/10-05.  Mr. Y. Yampolskij (License
Number AA 419258) has been appointed liquidator/insolvency
manager.

CONTACT:  AKMA
          Ukraine, Harkiv region,
          Vovchansk, Fontanna Str. 5

          Mr. Y. Yampolskij
          Liquidator/Insolvency Manager
          61171, Ukraine, Harkiv region,
          Saltivske Shose, 240-V/118

          ECONOMIC COURT OF HARKIV REGION
          61022, Ukraine, Harkiv region,
          Svobodi Square, 5, Derzhprom, 8th entrance


BUROVIK: Succumbs to Insolvency
-------------------------------
The Economic Court of Rivne region commenced bankruptcy
proceedings against Burovik (code EDRPOU 30233840) after finding
the limited liability company insolvent.  The case is docketed as
8/48.  Mr. Igor Yakima (License Number AA 140422) has been
appointed liquidator/insolvency manager.

CONTACT:  BUROVIK
          33000, Ukraine, Rivne region,
          Kurchatov Str. 60

          ECONOMIC COURT OF RIVNE REGION
          33001, Ukraine, Rivne region,
          Yavornitski Str. 59


CHAS-VS: Insolvency Manager Takes over Helm
-------------------------------------------
The Economic Court of Harkiv region commenced bankruptcy
proceedings against Chas-VS (code EDRPOU 32242815) on April 13,
2005 after finding the limited liability company insolvent.  The
case is docketed as B-39/27-05.  Mr. O. Doloshko (License Number
AA 315484) has been appointed liquidator/insolvency manager.

CONTACT:  CHAS-VS
          Ukraine, Harkiv region,
          Moskovskij Avenue, 259

          Mr. O. Doloshko
          Liquidator/Insolvency Manager
          Ukraine, Harkiv region,
          Druzhbi Narodiv Str. 267/48

          ECONOMIC COURT OF HARKIV REGION
          61022, Ukraine, Harkiv region,
          Svobodi Square, 5, Derzhprom, 8th entrance


NOVOROZDILSKIJ PLANT: Temporary Insolvency Manager Enters Firm
--------------------------------------------------------------
The Economic Court of Lviv region commenced bankruptcy
supervision procedure on OJSC Novorozdilskij Plant Signal (code
EDRPOU 23965674).  The case is docketed as 6/17-29/15.  Mr. Gula
Yaroslav (License Number AA 419202) has been appointed temporary
insolvency manager.  The company holds account number
26008301470712 at Prominvestbank, Mikolaiv branch, MFO 325451 and
account number 26002301283 at OJSC Oshadbank, Mikolaiv branch
6533.

CONTACT:  NOVOROZDILSKIJ PLANT SIGNAL
          81652, Ukraine, Lviv region,
          Novij Rozdil, Girnicha Str. 2

          Mr. Gula Yaroslav
          Temporary Insolvency Manager
          79049, Ukraine, Lviv region,
          Polubotok Str. 11/71

          ECONOMIC COURT OF LVIV REGION
          79010, Ukraine, Lviv region,
          Lichakivska Str. 81


RIZNOPAK: Under Bankruptcy Supervision
--------------------------------------
The Economic Court of Lviv region commenced bankruptcy
supervision procedure on LLC Riznopak (code EDRPOU 22406820).
The case is docketed as 6/82-4/50.  Ms. Irina Horoz (License
Number AA 783162) has been appointed temporary insolvency
manager.  The company holds account number 26000303 at JSPPB
Aval, Lviv regional branch, MFO 325570.

Creditors had until May 27, 2005 to submit their proofs of claim
to:

(a) RIZNOPAK
    79018, Ukraine, Lviv region,
    Storozhenko Str. 25 b

(b) Ms. Irina Horoz
    Temporary Insolvency Manager
    Ukraine, Lviv region,
    P. Pancha Str. 18/48

(c) ECONOMIC COURT OF LVIV REGION
    79010, Ukraine, Lviv region,
    Lichakivska Str. 81


STELLA: Bankruptcy Supervision Starts
-------------------------------------
The Economic Court of Dnipropetrovsk region commenced bankruptcy
supervision procedure on LLC Stella (code EDRPOU 21934238).  The
case is docketed as B 29/27/05.  Mr. Andrij Sobolyev (License
Number AB 216854) has been appointed temporary insolvency
manager.  The company holds account numbers 260022058, 2606216 at
JSPPB Aval, Krivij Rig branch, MFO 306748; account number
26008010214810(643) at CB Finances and Credit, MFO 305835;
account numbers 26000151564002, 36001151564001 and 26002151564022
at CB Privatbank, Krivij Rig branch, MFO 305750; and account
numbers 2600701571324 and 2600004571324/840 at CJSC Ukreximbank,
MFO 305589.

CONTACT:  STELLA
          50027, Ukraine, Dnipropetrovsk region,
          Krivij Rig, Yesenin Str. 1/21

          Mr. Andrij Sobolyev
          Temporary Insolvency Manager
          50027, Ukraine, Dnipropetrovsk region,
          Krivij Rig, Yesenin Str. 1/21

          ECONOMIC COURT OF DNIPROPETROVSK REGION
          49600, Ukraine, Dnipropetrovsk region,
          Kujbishev Str. 1a


TRIEM: Court Appoints Insolvency Manager
----------------------------------------
The Economic Court of Rivne region commenced bankruptcy
proceedings against Triem (code EDRPOU 30605983) on April 14,
2005 after finding the limited liability company insolvent.
The case is docketed as 4/12.  Mr. Igor Yakima (License Number AA
140422) has been appointed liquidator/insolvency manager.

CONTACT:  TRIEM
          33000, Ukraine, Rivne region,
          Budivelnikiv Str. 7

          ECONOMIC COURT OF RIVNE REGION
          33001, Ukraine, Rivne region,
          Yavornitski Str. 59


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


3RD ANGLE: Members Final Meeting Set July
-----------------------------------------
The final meeting of the members of 3rd Angle Limited will be on
July 1, 2005 at 10:00 a.m.  It will be held at the offices of
PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.  Proxy forms must be lodged with
PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT not
later than 12:00 noon, June 30, 2005.

CONTACT:  PRICEWATERHOUSECOOPERS LLP
          Plumtree Court
          London EC4A 4HT
          Phone: [44] (20) 7583 5000
          Fax:   [44] (20) 7822 4652
          Web site: http://www.pwc.com


A1 LIMITED: Holds Final Creditors Meeting
-----------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

                  IN THE MATTER OF A1 Limited

Notice is hereby given that the Final Meeting of Creditors of A1
Limited will be held at the offices of Grant Thornton U.K. LLP,
31 Carlton Crescent, Southampton SO15 2EW, on June 20, 2005, at
10:30 a.m. to receive the Liquidator's report of the winding-up
and to determine whether the Liquidator should have his release.

A Creditor entitled to attend and vote at the Meeting may appoint
a proxy to attend and vote in his place.  Proxy forms must be
returned to the offices of Grant Thornton U.K. LLP, 31 Carlton
Crescent, Southampton SO15 2EW, no later than 12:00 noon on June
17, 2005.

J. P. F. McLean, Liquidator
May 13, 2005

CONTACT:  GRANT THORNTON U.K. LLP
          31 Carlton Crescent
          Southampton SO15 2EW
          Phone: 023 8022 1231
          Fax: 023 8022 4017
          Web site: http://www.grant-thornton.co.uk


ABACUS INSTALLATIONS: Final Creditors Meeting Set June
------------------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

          IN THE MATTER OF Abacus Installations Limited

Notice is hereby given that the Final Meeting of Creditors of
Abacus Installations Limited will be held at the offices of
Mazars LLP, Clifton Down House, Beaufort Buildings, Clifton,
Bristol BS8 4AN, on June 22, 2005, at 10:30 a.m.

The Meeting is called, pursuant to section 146 of the Insolvency
Act 1986, for the purpose of enabling the Liquidator to present
an account showing the manner in which the winding-up of the
Company has been conducted.  A Creditor is entitled to attend and
vote or to appoint a proxy to attend and vote instead of him.  A
proxy need not be a Creditor.

Proxies to be used at the Meeting should be lodged at Clifton
Down House, Beaufort Buildings, Clifton, Bristol BS8 4AN, no
later than 12:00 noon on the working day prior to the Meeting.

T. C. H. Ball, Liquidator
May 16, 2005

CONTACT:  MAZARS LLP
          24 Bevis Marks
          London EC3A 7NR
          Phone: (44) 20 73 77 10 00
          Fax: (44) 20 73 77 89 31
          Web site: http://www.mazars.com


AH PLC: Liquidator's Final Report Out June 28
---------------------------------------------
The final meeting of the members of AH Plc will be on June 28,
2005 at 9:30 a.m.  It will be held at the offices of Kroll, 10
Fleet Place, London EC4M 7RB.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.  Proxy forms must be lodged with
Kroll, 10 Fleet Place, London EC4M 7RB not later than 12:00 noon,
June 27, 2005.

CONTACT:  KROLL LIMITED
          10 Fleet Place
          London EC4M 7RB
          United Kingdom
          Phone: 44 (0) 207 029 5000
          Fax: 44 (0) 207 029 5001
          Web site: http://www.krollworldwide.com


ALLIED DOMECQ: Put up or Shut up, Constellation Brands Told
-----------------------------------------------------------
The City's Takeover Panel gave the Constellation Brands-led
consortium until late June to submit a counter-offer for
winemaker Allied Domecq, The Scotsman says.

The panel told Constellation to "put up or shut up," pressuring
the U.S. group to formalize its bid or desist from submitting any
for six months.  The panel gave Constellation until 5:00 p.m. of
June 29 to submit an offer.

The ruling is a break for Allied, which has seen a "change in
behavior" among customers and suppliers since takeover talks
swirled.  Allied noted that rivals are taking advantage of their
situation and trying to chip away the group's market share
through targeted price-cutting and promotions.  The company has
already taken countermeasures and expects to bear financial
results in line with outlook.

"While these indications are encouraging, the unavoidable
disruption caused by the [Pernod] offer and the approach from the
consortium may yet have a short-term impact on the performance of
the business," Allied said in a statement.

The pressure is on for Constellation, which along with U.S.
winemaker Brown Forman and financial firms Lion Capital and
Blackstone Group, has vowed to match the bid of Pernod Ricard and
Fortune Brands.  Constellation is confident it can put up a
viable bid before the deadline set by the takeover panel.

Allied shareholders will meet on July 4 to vote on the offer by
Pernod, which expects to complete the deal weeks later on July
26.

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


ANGLO ABRASIVES: Meeting of Creditors Set June
----------------------------------------------
Name of companies:
Anglo Abrasives Limited
Carborundum Abrasives UK Limited

The creditors of these companies will meet on June 8, 2005 at
11:00 a.m. and 12:30 p.m. respectively.  It will be held at the
offices of Ernst & Young LLP, 100 Barbirolli Square, Manchester
M2 3EY.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Ernst & Young LLP, 100 Barbirolli Square,
Manchester M2 3EY not later than 12:00 noon, June 7, 2005.

CONTACT:  ERNST & YOUNG LLP
          100 Barbirolli Square,
          Manchester M2 3EY
          Phone: +44 [0] 161 333 3000
          Fax:   +44 [0] 161 333 3001
          Web site: http://www.ey.com


BERRY PILING: Appoints Bond Partners Administrator
--------------------------------------------------
T. Papanicola (IP No 005496) has been appointed administrator for
building contractor Berry Piling Limited.  The appointment was
made May 19, 2005.  Its registered office is located at Imperial
Buildings, Victoria Road, Horley, Surrey RH6 7PZ.

CONTACT:  BOND PARTNERS LLP
          The Grange
          100 High Street
          London N14 6TG
          Phone: 020 8444 2000
          Fax: 020 8444 3400
          E-mail: tp@bondpartners.co.uk


BLUEMOON FRUIT: Sets Members Final Meeting June
-----------------------------------------------
The final meeting of the members of Bluemoon Fruit UK Limited
will be on June 23, 2005.  It will be held at KPMG, Stokes House,
17-25 College Square East, Belfast BT1 6DH.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.

CONTACT:  KPMG
          Stokes House,
          17-25 College Square East,
          Belfast BT1 6DH
          Web site: http://www.kpmg.co.uk


BOOTS GROUP: Healthcare Arm Attracts GlaxoSmithKline
----------------------------------------------------
GlaxoSmithKline plc is eyeing Boots Healthcare International, the
healthcare products venture of Boots Group plc, said Tiscali
Wednesday.

GSK Chief Executive Jean-Pierre Garnier said: "We are looking at
the Boots opportunity when that becomes available, which is not
now but is in July."

The company has kept mum amid rumors it is interested in
acquiring the business, with Mr. Garnier noting that GSK has not
considered venturing into generic medicines.  Private equity
group Kohlberg Kravis Roberts was earlier said to be also looking
at Boots' healthcare business, which owns the Clearasil skin
products, Nurofen painkillers and Strepsils lozenges, and could
be valued up to GBP1.2 billion.

Meanwhile, the company's major arm, Boots The Chemist, showed no
significant improvements as big supermarket groups try to
penetrate the pharmaceutical trade.  The unit, which currently
operates through 1,400 drugstores, is carrying out price
reductions and restructuring its supply chain.  Same-store sales,
which dropped 0.9% in April, is expected to grow by only about
2%, while operating costs are predicted to increase by 6%, with
gross margin staying flat.

CONTACT:  BOOTS GROUP PLC
          1 Thane Road
          Notttingham NG2 3AA
          Phone: 0115 950 6111
          Customer Service: 0845 070 80 90
          Web site: http://www.boots-plc.com

          GLAXOSMITHKLINE PLC
          980 Great West Rd., Brentford
          London
          TW8 9GS, United Kingdom
          Phone: +44-20-8047-5000
          Fax: +44-20-8047-7807
          Web site: http://www.gsk.com


CNS SUBSEA: Forced into Administration by Supplier
--------------------------------------------------
Offshore service firm Cns Subsea Limited said last week it was
going into administration due to claims, totaling over
GBP220,000, filed against it by two firms.

According to This Is North Scotland, James Fisher Rumic and James
Fisher Scan Tech are claiming from Cns Subsea GBP47,521 and
GBP166,703, plus expenses, respectively.  This came following a
case brought by the Collector of Taxes last December against Cns.

The Aberdeen-based firm reportedly encountered problems with its
renewables division, Cns Renewables, after only 18 months of
venturing into the sector.  Cns, which employs 32 people, also
saw work-related rows on offshore windfarms at North Hoyle,
Wales, and Scroby Sands, Great Yarmouth.

Managing director John Sinclair said: "We have experienced
ongoing cash flow difficulties since entering the offshore
renewables sector, which have been aggravated by non-payment on
the projects under dispute; projects which have been successfully
completed on time and within budget."

Mr. Sinclair noted, however, the support coming from the
company's bank, and its efforts to update major investors.   "The
majority agreed to support us going forward but, unfortunately,
one supplier has served a winding-up order on Cns Renewables and
it is with great regret that the company is being forced into
administration," he said.

In its 2002 accounts, Cns booked pre-tax losses of GBP3.31
million on turnover of GBP5.14 million, compared with profits of
GBP25,763 on turnover of GBP28.8 million the year earlier.

The firm, which specializes in subsea cable-laying and burial,
was a New Start Awardee in the Grampian Awards for Business
Start-up in 2001.  The award was handed out in recognition of the
tenfold increase in its turnover four years after its
establishment in 1997.

CONTACT:  CNS SUBSEA LIMITED
          7 Rubislaw Terrace
          Aberdeen, Scotland
          AB10 1XE
          Phone: +44 [0]1224 351500
          Fax: +44 [0]1224 351501
          E-mail: cns@cns-ltd.com
          Web site: http://www.cns-ltd.com


DARAY LIGHTING: Creditors Meeting Next Week
-------------------------------------------
The creditors of Daray Lighting Limited will meet on June 6, 2005
at 12:00 noon.  It will be held at The Swan Hotel, High Street,
Leighton Buzzard LU7 1EA.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Marlor Walls, C12 Marquis Court, Marquis Way, Team
Valley, Gateshead NE11 0RU not later than 12:00 noon, June 3,
2005.

CONTACT:  MARLOR WALLS & COMPANY
          C12 Marquis Court
          Marquis Way
          Team Valley
          Gateshead
          Tyne & Wear NE11 0RU
          Phone: 0191 482 3343
          Fax: 0191 491 3062
          E-mail: ew@marlorwalls.co.uk


DART CORPORATION: Members Pass Winding-up Resolutions
-----------------------------------------------------
At the extraordinary general meeting of members of The Dart
Corporation Limited on May 16, 2005 held at Well Court, 14-16
Farringdon Lane, London EC1R 3AU, the special and ordinary
resolutions to wind up the company were passed.  Mark Philip
Bassford of Maurice J. Bushell & Co, Well Court, 14-16 Farringdon
Lane, London EC1R 3AU has been appointed liquidator of the
company.

CONTACT:  MAURICE J. BUSHELL & CO.
          Well Court
          14-16 Farringdon Lane
          London EC1R 3AU
          Phone: 020 7688 7700
          Fax: 020 7688 7720
          E-mail: bassfordm@mjb.co.uk


DEBENHAMS FINANCE: Notes Redemption Plan a Negative Development
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit and 'B' subordinated debt ratings on U.K.-based
department store operator Debenhams Finance Holdings PLC on
CreditWatch with negative implications, following a significant
change in the company's capital structure.

The CreditWatch placement follows Debenhams' announcement that it
is to redeem its subordinated senior notes due 2012 and the
group's notice that it will cancel its existing senior credit
facilities.

"The negative implications reflect that the future capital
structure of Debenhams is uncertain at this stage but could
become significantly more aggressive," said Standard & Poor's
credit analyst Sunita Kara.  "We have assumed that Debenhams will
releverage and the company's future financial profile and policy
may not be at a level consistent with the current ratings."

Specifically, this is defined as lease-adjusted net debt to
earnings before interest, depreciation, amortization, and rents
(EBITDAR) of no more than 4.0x.  Standard & Poor's hopes to
resolve the CreditWatch after Debenhams defines its new capital
structure.  The ratings could be lowered if a significantly more
aggressive financial profile is adopted.  The lowering of the
ratings could be limited to one notch, to 'B+' for the corporate
credit rating, if an increase in leverage results in
lease-adjusted net debt to EBITDAR of 5.0x-5.5x.  If leverage
increases to more than 5.5x, the ratings could be lowered by more
than one notch.

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


DRAKE & SON: Hires Coyne Butterworth & Chalmers as Liquidator
-------------------------------------------------------------
At the extraordinary general meeting of Drake & Son Limited on
May 16, 2005 held at The Jack in the Green Inn, Rockbeare, near
Exeter, the subjoined special resolution to wind up the company
was passed.  Ian William Walton of Coyne, Butterworth & Chalmers,
Lupins Business Centre, 1-3 Greenhill, Weymouth, Dorset DT4 7SP
has been appointed liquidator of the company.

CONTACT:  COYNE BUTTERWORTH & CHALMERS
          Lupins Business Centre
          1-3 Greenhill
          Weymouth
          Dorset DT4 7SP
          Phone: 01305 772458
          Fax: 01305 779956
          E-mail: wey@c-b-c.co.uk


EDMONDSON LIFTING: Appoints Administrator from Bennett Verby
------------------------------------------------------------
Vincent A. Simmons (IP No 8898) has been appointed administrator
for Edmondson Lifting Limited.  The appointment was made May 19,
2005.  The company sells lighting gear.  Its registered office is
located at The Stables, Chandos Street, Shaw, Lancashire OL2 8AZ.

CONTACT:  BENNETT VERBY
          7 St Petersgate
          Stockport
          Cheshire SK1 1EB
          Phone: 0161 477 9345
          Fax: 0161 429 7224
          E-mail: v.simmons@bennettverby.co.uk


FG NUMBER: Final Members Meeting Set Third Week of June
-------------------------------------------------------
The final meeting of the members of FG Number Two Limited will be
on June 23, 2005.  It will be held at KPMG, Stokes House, 17-25
College Square East, Belfast BT1 6DH.

The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
company disposed of, and to hear any explanation that may be
given by the liquidator.  Members who want to be represented at
the meeting may appoint proxies.

CONTACT:  KPMG
          Stokes House,
          17-25 College Square East,
          Belfast BT1 6DH
          Web site: http://www.kpmg.co.uk


GMAC COMMERCIAL: Not Affected by Parent's Downgrade
---------------------------------------------------
Fitch Ratings on May 26 affirmed the U.K. commercial mortgage
servicing operations of GMAC Commercial Mortgage Servicing
(Ireland) Limited, as primary servicer and GMAC Commercial
Mortgage Servicing (U.K.), as special servicer (together GMACCM
U.K.) at 'CPS2+UK' and 'CSS2UK' respectively.  These affirmations
are despite the downgrade of GMACCM U.K.'s parent company General
Motors and its subsidiary General Motors Acceptance Corporation
both of which have been downgraded to Senior Unsecured 'BB+' from
'BBB-' (see statement dated 24 May 2005 on
http://www.fitchratings.com).

Based on the historically strong financial performance of GMACCM
U.K., conversations with senior management and the previous
announcement of discussions to divest a majority interest of the
company from GMAC, Fitch takes the view that the downgrade should
not negatively affect the U.K. servicing operations.  Fitch will
continue to monitor the situation for any possible effect on the
company's U.K. servicer platforms.

Fitch rates residential and commercial mortgage loan primary,
master, and special servicers on a scale of 1 to 4, with 1 being
the highest rating.  For more information on the review and
rating process for U.K. servicers, please see Rating European
Residential and Commercial Mortgage Loan Servicers-2005 dated 14
March 2005, and Rating European Mortgage Loan Servicers -- U.K.
Market Addendum dated 25 May 2005, both available on the agency's
Web site at http://www.fitchratings.com.

CONTACT:  FITCH RATINGS
          Edward Register, London
          Phone: +44 (0) 20 7862 4132

          Jeremy Deacon
          Phone: +44 (0) 20 7417 3496

          Andrew Currie
          Phone: +44 (0) 20 7417 4374

          Media Relations:
          Julian Dennison, London
          Phone: +44 20 7862 4080


GOLDPORT DEVELOPMENTS: Calls in Phimore & Co. Administrator
-----------------------------------------------------------
Jonathan Paul Philmore (IP No 9098) has been appointed
administrator for signmakers Goldport Developments Limited.  The
appointment was made May 16, 2005.  Its registered office is
located at Caxton House, 1 Queen Street, Mirfield WF14 8AH.

CONTACT:  PHILMORE & CO.
          Caxton House,
          1 Queen Street,
          Mirfield WF14 8AH


I.B.S. SERVICES: Calls in Liquidator from Doyle Davies
------------------------------------------------------
At the extraordinary general meeting of I.B.S. Services Limited
on May 17, 2005 held at Doyle Davies, 21 St Andrews Crescent,
Cardiff, the subjoined special, ordinary and extraordinary
resolutions to wind up the company were passed.  Brendan Eric
Doyle of Doyle Davies, 21 St Andrews Crescent, Cardiff has been
appointed liquidator of the company.

CONTACT:  DOYLE DAVIES
          21 St Andrews Crescent,
          Cardiff


IMPERIAL PUB: Creditors Meeting Set Thursday
--------------------------------------------
Name of companies:
Imperial Pub Limited
Liddell Taverns Limited
Trentforge Limited
Wessex Bars Limited
Wessex Pacific Limited
Wessex Taverns Group Limited
Wessex Taverns Limited

The creditors of these companies will meet on June 2, 2005 at
11:00 a.m.  It will be held at The Vermont Hotel, Castle Garth,
Newcastle upon Tyne NE1 1RQ.  Creditors who want to be
represented at the meeting may appoint proxies.  Proxy forms must
be submitted together with written debt claims to Grant Thornton
UK LLP, 75-85 Grey Street, Newcastle upon Tyne NE1 6EF not later
than 12:00 noon, June 1, 2005.


JAYCEE FURNITURE: Names Tenon Recovery Administrator
----------------------------------------------------
Simon Robert Thomas and Steven John Parker (IP Nos 8920, 8989)
have been appointed joint administrators for Jaycee Furniture
Limited.  The appointment was made May 18, 2005.  The company
manufactures furniture.  Its registered office is located at
Hemeda Buildings, Hempshill Lane, Bulwell, Nottingham NG6 8PF.

CONTACT:  TENON RECOVERY
          Sherlock House
          73 Baker Street
          London W1U 6RD
          Phone: 020 7935 5566
          Fax: 020 7935 3512
          E-mail: bakerstreet@tenongroup.com
          Web site: http://www.tenongroup.com


JOSEPH WARD: In Administrative Receivership
-------------------------------------------
The Trustees of the Joseph Ward & Co (Printers) Limited Pension
Scheme appoints Paul Stanley and Robert Sadler joint
administrative receivers for Joseph Ward (Colourprint) Limited
(Reg No 572275, Trade Classification: 2222).  The application was
filed May 11, 2005.

CONTACT:  BEGBIES TRAYNOR
          Elliot House
          151 Deansgate
          Manchester M3 3BP
          Phone: 0161 839 0900
          Fax: 0161 839 7436
          E-mail: manchester@begbies-traynor.com
          Web site: http://www.begbies.com


JOSE PISCADOR: Winding-up Report Out June
-----------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

          IN THE MATTER OF JOSE PISCADOR (U.K.) LIMITED

Notice is hereby given, pursuant to section 146 of the Insolvency
Act 1986, that the Final Meeting of Creditors of the above-named
Company will be held at the offices of Tenon Recovery, Lyndean
House, 43-46 Queens Road, Brighton, East Sussex BN1 3XB, on June,
23, 2005, at 10:00 a.m. for the purpose of having an account laid
before them, showing the manner in which the winding-up has been
conducted and the property of the Company disposed of, and of
hearing any explanation that may be given by the Liquidator.

Any Member or Creditor entitled to attend and vote at the above
Meeting may appoint a proxy to attend and vote in their place.
It is not necessary for the proxy to be a Member or a Creditor.
Proxy forms must be returned to the above address no later than
12:00 noon on the day prior to the Meeting.

R. S. Dunn, Liquidator
May 13, 2005

CONTACT:  TENON RECOVERY
          3rd Floor
          Lyndean House
          43/46 Queens Road
          Brighton BN1 3XB
          Phone: 01273 725566
          Fax: 01273 724502
          E-mail: brighton@tenongroup.com
          Web site: http://www.tenongroup.com


KWELM: Creditors to Receive Increased Payout
--------------------------------------------
Creditors of the insolvent London-based KWELM insurance companies
will receive an average additional 11% payout across the five
companies, according to the eleventh annual report for 2004
issued May 19.  The average payment will be 64%.

The report also projects that the average distribution will rise
further to between 68% and 74% in the next 12 months.  This is
higher than projected in the early closure scheme, which came
into effect in April 2004.

Average distribution to creditors rises from 53% to 64%, payable
from end May 2005; distribution levels to date range from 53% to
72% across the five companies.

Creditors received a further US$444 million in 2004 taking total
benefits to US$3.4 billion.

Cumulative gross reinsurance recoveries reached US$2.1 billion
including US$78 million recovered during 2004.

Aggregate agreed and submitted liabilities were US$3.8 billion at
end March 2005.

Income generated of US$111 million exceeded expenses by US$82
million.

The KWELM companies are subsidiaries of the failed London United
Investments plc.

They comprise Kingscroft Insurance, Walbrook Insurance, El Paso
Insurance, Lime Street Insurance and Mutual Reinsurance.  They
specialized in U.S. casualty, professional indemnity and other
liability insurance business.  Over 90% of the KWELM assets and
liabilities are in U.S. dollars and most of the policyholders are
based in the United States.

The companies and their creditors entered into a Court approved
"Scheme of Arrangement" in 1993, the objective of which is to pay
out to valid creditors the maximum sum in the minimum timescale.
The scheme was amended in 2004 to permit early closure.

The payouts for the five companies are:

Company               Revised payment        Previous payment
                 percentage (May 2005)   percentage (April 2004)
Kingscroft                 65                     57
Walbrook                   65                     51
El Paso                    72                     62
Lime Street                68                     60
Mutual                     53                     44
Average                    64                     53

Chris Hughes and Ian Bond, the Scheme Administrators responsible
for the run off of the businesses, comment: "We have made
significant progress processing the additional claims submitted
by the September 2004 bar date.  The revised payment percentages
are based on our March 2005 estimate of US$3.8 billion of agreed
and submitted liabilities.  We expect this figure to fall further
as we settle the remaining claims.

"This will enable us to pay a higher overall distribution than
projected in the scheme documents, and within a shorter
timescale.  When we launched the original scheme in late 1993 we
predicted an average return to creditors of 39% during a
timescale extending beyond 2015.

"In the event, the average distribution in 2004 has risen to 64%
and we are hoping to raise the payouts to between 68% and 74%
before the end of 2005."

The administrators also predict that creditors will receive a
small ultimate distribution of one or two per cent within the
next two to five years.

                            *   *   *

The major proportion of insurance cover provided by the KWELM
companies was written between 1972 and 1990.  Payment percentages
reflect available assets and estimated ultimate liabilities,
including estimated scheme liabilities and submitted claims,
which have not been agreed, and a provision for administrative
costs and other liabilities.  No account is taken of future
investment income, reinsurance recoveries or asset realizations.

Further copies of the KWELM annual review can be obtained from
the individuals below or viewed on the KWELM Web site.

CONTACT:  KWELM
          John Stow House
          18 Bevis Marks
          London EC3A 7JB
          Phone: +44 (0) 20 7645 4700
          Fax: +44 (0) 20 7645 4777

          Chris Hughes
          Phone: +44 (0) 20 7398 2900
          E-mail: chris.hughes@kwelm.com

          Chris Reynolds
          Phone: +44 (0) 20 7645 4990
          E-mail: chris.reynolds@kwelm.com

          CAROLINE CECIL ASSOCIATES
          Caroline Cecil
          Phone: +44 (0) 20 7610 4110
          E-mail: cc@carolinececil.co.uk
          Web site: http://www.kwelm.com


LECO DEVELOPMENTS: Members Pass Winding-up Resolutions
------------------------------------------------------
At the extraordinary general meeting of the members of Leco
Developments Limited on May 17, 2005 held at Brinkletts House,
15Winchester Road, Basingstoke RG21 8UE, the special and ordinary
resolutions to wind up the company were passed.  Laurence G.
Factor of Newman & Partners Insolvency & Recovery Services
Limited, Lynwood House, 373-375 Station Road, Harrow, Middlesex
HA1 2AW has been appointed liquidator of the company.

CONTACT:  NEWMAN & PARTNERS
          INSOLVENCY & RECOVERY SERVICES LIMITED
          Lynwood House,
          373-375 Station Road,
          Harrow, Middlesex HA1 2AW


LIONWELD KENNEDY: Administrators from Ernst & Young Move in
-----------------------------------------------------------
R. H. Kelly and G. Wilson (IP Nos 8582, 9062) have been appointed
joint administrators for Lionweld Kennedy UK Limited.  The
appointment was made May 13, 2005.  Its registered office is
located at Marsh Road, Middlesbrough, Cleveland TS1 5JS.

CONTACT:  ERNST & YOUNG
          PO Box 61, Cloth Hall Court
          14 King Street, Leeds LS1 2JN
          Phone: +44 [0] 113 298 2200
          Fax:   +44 [0] 113 298 2201
          Web site: http://www.ey.com


MANCHESTER NEON: Liquidator from Tomlinson Moves in
---------------------------------------------------
At the extraordinary general meeting of Manchester Neon
Contractors Limited on May 18, 2005 held at Tomlinsons, St John's
Court, 72 Gartside Street, Manchester M3 3EL, the special and
ordinary 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


MARCONI CORPORATION: Wins Five-year Supply Contract from C&W
------------------------------------------------------------
Marconi Corporation plc won a contract from Cable & Wireless to
supply infrastructure for its access transmission network.

The frame contract for a multi-service provisioning platform
(MSPP) will run for an initial period of five years.  Marconi
will supply a range of transport services for Cable and Wireless,
including access and customer-located solutions.

Frank Mount, director of operations for Cable and Wireless, said:
"The Marconi solution provides Cable and Wireless with a high
level of capability and flexibility to support our network
strategy and the introduction of a new suite of high-speed
customer services."

Rod Smith, managing director of Marconi's Northern Europe
business, said: "Marconi's MSPP enables Cable and Wireless to
increment its legacy SDH network at lower cost and with the
technology that will support its migration to NGN (next
generation network)."

About Cable & Wireless

Cable & Wireless is one of the world's leading international
communications companies.  It provides voice, data and IP
(Internet Protocol) services to business and residential
customers, as well as services to other telecoms carriers, mobile
operators and providers of content, applications and Internet
services.

Cable & Wireless' principal operations are in the United Kingdom,
continental Europe, Asia, the Caribbean, Panama and the Middle
East.

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


M. & B. BROAD: Members Pass Winding-up Resolution
-------------------------------------------------
At the extraordinary general meeting of the members of M. & B.
Broad Haulage Limited on May 17, 2005 held at Archers Solicitors,
24 Yarm Road, Stockton-on-Tees TS18 3NB, the special resolution
to wind up the company was passed.  John Harvey Madden, of Taylor
Rowlands, 8 High Street, Yarm, Stockton-on-Tees TS15 9AE has been
appointed liquidator of the company.

CONTACT:  TAYLOR ROWLANDS
          8 High Street
          Yarm
          Cleveland TS15 9AE
          Phone: 01642 790790
          Fax: 01642 785588
          E-mail: harvey@taylorrowlands.co.uk


MCARDLE ENVIRONMENTAL: Hires Liquidator from Smith & Williamson
---------------------------------------------------------------
At the extraordinary general meeting of Mcardle Environmental
Limited on May 20, 2005 held at McArdle House, Great Central Way,
Wembley, Middlesex HA9 0HR, the special resolution to wind up the
company was passed.  Stephen Robert Cork of Smith & Williamson
has been appointed liquidator of the company.

CONTACT:  SMITH & WILLIAMSON
          No 1 Riding House Street
          London W1A 3AS
          Phone: 020 7637 5377
          Fax: 020 7631 0741
          E-mail: gdp@smith.williamson.co.uk
          Web site: http://www.smith.williamson.co.uk


MG ROVER: Collapse Will Leave Almost Nothing to Creditors
---------------------------------------------------------
Companies who lent money to MG Rover are likely to be paid no
more than five pence on the pound for their loans to the bankrupt
carmaker, according to AFP.

A report by MG Rover administrator, PricewaterhouseCoopers, said
it has received claims for more than GBP1.37 billion (EUR1.999
billion, US$2.49 billion).  It may be left with only GBP80.5
million in assets once it settles all liabilities to secured and
preferential creditors.

According to The Times, MG Rover's debt now stands at GBP1.8
billion, including GBP641 million in "inter-company
indebtedness," pension liabilities, and warranty claims.  Pension
liabilities amount to GBP325 million.

MG Rover's single biggest creditor is its current owner Phoenix
Ventures, which together with subsidiaries, are owed GBP460
million.  It owes previous owner BMW GBP8.1 million.

MG Rover is without income.  Initial analysis reveal it is losing
about GBP25 million a month.  It went under mid-April after a
takeover by China Shanghai Auto Industry Corp. (SAIC) failed.

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


MG ROVER: 400 Ex-workers Get New Jobs; 800 Under Training
---------------------------------------------------------
Over 400 former MG Rover workers are again employed, while 800
are under training, said Personnel Today on Wednesday.

MG Rover has reportedly provided companies emergency grants worth
GBP2 million to temporarily retain more than 2,000 employees.

MG Rover Task Force chairman, Nick Paul, said: "For companies hit
by MG Rover's closure, the grants we have been able to offer have
provided short-term breathing space.

"Our priority now is to work with these companies to offer them
longer-term support to find new markets for their products and
get on with life without MG Rover."

The company collapsed on April 8 after a tie-up with the Shanghai
Automotive Industry Corporation SAIC failed to materialize,
leaving more than 5,000 workers jobless.

The joint administrators of MG Rover Group Limited have already
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 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.

Meanwhile, talks for the sale of the rest of the business and
assets are ongoing with two interested parties.

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


NETWORK RAIL: Chris Green to Join Board Next Month
--------------------------------------------------
Network Rail is announcing the appointment of Chris Green as a
non-executive director with effect from 26 June 2005.

Mr. Green is a widely respected railwayman with 40 years of
railway experience.  Mr. Green started his railway career in 1965
as a management trainee and worked his way up to become managing
director of Network SouthEast in 1986 and of Inter City in 1992.

After a brief spell away from the railway where Mr. Green became
Chief Executive of English Heritage, he returned as Chief
Executive of Virgin Trains in 1999.  Last year he become Chairman
of Virgin Rail Group and will leave this role before taking up
his new position at Network Rail.

Announcing Mr. Green's appointment, Chairman, Ian McAllister,
said: "I am delighted to welcome Chris Green to the Network Rail
Board.  His particular skills and experience will bring a unique
perspective to the Board that will be invaluable as Network Rail
continues the task of rebuilding Britain's railway."

Chris Green is married to Mitzie, an artist, and has two adult
children.  He enjoys music, walking, traveling and canal boating
in his spare time.  Also he is chairman of the Railway Forum and
a trustee of the Royal Liverpool Philharmonic orchestra where he
is active in the Liverpool Capital of Culture initiative for
2008.

Chris Green said: "I have greatly enjoyed my five years with
Virgin Trains and wish them every success.  I now look forward to
new challenges as a Board Member for Network Rail and am
delighted to be joining at a time when the need for a
professional and expanding rail industry has never been greater."

CONTACT:  NETWORK RAIL LIMITED
          40 Melton St.
          London NW1 2EE,
          United Kingdom
          Phone: +44 20 7557 8000
          Fax:   +44 20 7557 9000
          Web site: http://www.networkrail.com


NETWORK RAIL: Invests GBP50 Million in New Signaling Technology
---------------------------------------------------------------
Passengers in the Portsmouth area are set to benefit from a new
state of the art signaling scheme.  The computer-based
interlocking system -- one of the first on the network -- will
offer passengers improved levels of reliability and reduce
delays.

Network Rail will work closely with Siemens on the design and
building of the GBP50 million scheme.  131 signals and 47 sets of
points over 58 track miles are set to be replaced, and the system
will be controlled from a new signaling center at Havant.

Projects and Engineering Director, Peter Henderson, said: "This
infrastructure project is part of Network Rail's drive to improve
the condition of its assets, increasing reliability and
delivering a better train service performance for passengers in
the Portsmouth area.  The huge task of rebuilding our railway is
well underway."

The new system will support track renewal and remodeling work in
the Portsmouth, Fratton and Havant areas with signaling control
extending to Emsworth, Petersfield and Fareham.

Work starts in July and it is expected to be completed in 2007.

CONTACT:  NETWORK RAIL LIMITED
          40 Melton St.
          London NW1 2EE,
          United Kingdom
          Phone: +44 20 7557 8000
          Fax:   +44 20 7557 9000
          Web site: http://www.networkrail.com


NETWORK RAIL: Returns to Profit at Operating Level
--------------------------------------------------
Financial highlights:

(a) operating profit of GBP407 million, compared to last year's
    operating loss of GBP758 million;

(b) performance regimes delivered GBP102 million of income,
    compared to penalties of GBP348 million last year; and

(c) net debt increased from GBP12.6 billion to GBP15.6 billion
    but remains well below previous projections.

Performance results:

(a) a 17% reduction in Network Rail delay minutes, down to 11.4
    million minutes from 13.7 million minutes;

(b) an increase in the proportion of 'on time' trains, as
    indicated by the Public Performance Measure, from 81.2% to
    83.6%;

(c) freight market growth continues with a 4.2% increase in
    gross ton miles in the last year; and

(d) in partnership with train operators, seven integrated
    control centers have been created across the country.  They
    are delivering tangible performance benefits of up to a 30%
    reduction in delays per incident -- the measure most
    impacted by the speed of decision-making.

Safety indicators:

(a) SPAD (Signals Passed At Danger) risk has, on a two-year
    basis, decreased by 61% to its lowest ever level following
    the completion of the Train Protection and Warning System
    (TPWS) project; and

(b) broken rails surpassed last year's all-time 'lowest ever'
    record of 334 and fell a further 3.6% to 322.  Five years
    ago these stood at more than 900 per annum.

Asset condition:

(a) in the last year 626 miles of new rail were laid, 511 sets
    of points installed and 450 miles of ballast renewed.  This
    represents nearly double the activity levels of just five
    years ago;

(b) points failures dropped by 11% and track circuit failures
    fell by 7%; and

(c) the company has invested heavily in the most advanced high
    output machinery in the world, machines with the potential
    to slash work times and increase productivity by more than
    50%:

    (i) one high output track renewal train and wagons (GBP17
        million);

   (ii) two high output ballast machines (GBP26 million each);
        and

  (iii) other plant to complement these high output systems (for
        example, dynamic track stabilizer) (GBP19 million).

People:

(a) the incorporation of 15,000 maintenance employees was
    successfully completed during the summer and has delivered
    reduced costs and improved performance;

(b) Network Rail has embarked on an ambitious program of
    employee development:

    (i) GBP20 million purpose built leadership center just
        purchased in Coventry;

   (ii) foundation degree course in railway engineering in its
        second year at Sheffield Hallam University;

  (iii) advanced apprentice scheme for over 1,000 17-18 year
        olds starts in September at HMS Sultan in Gosport;

   (iv) state-of-the-art signaler training centers opened in
        Leeds and Watford; and

    (v) skills and competence training for all maintenance
        employees well underway.

Chairman Ian McAllister said: "The last year has been a
successful one.  The improvement that began during the previous
year has been sustained and is accelerating.  For 19 successive
months we have witnessed year on year improvement in delays
attributed to Network Rail and the bar has been raised with even
tougher targets introduced for the future.

"During 2004/05, delays caused by the rail infrastructure reduced
by 2.3 million minutes.  This 17% reduction means the target set
by the Office of Rail Regulation has been exceeded by nearly
900,000 minutes.  The achievement in bringing down delays is a
tremendous accomplishment of which everyone in the Company is
justly proud.

"Along with the marked improvement in train performance, the year
has also seen a significant improvement in our efficiency and
financial results.  Real savings are now coming through, which
have contributed to a return to operating profit.

"In the year to come our objective is to build on these
improvements -- maintaining the good safety record, making the
railway more efficient and making trains more punctual."

Group Finance Director Ron Henderson said: "This has been a year
that has given us a great deal of encouragement as we begin to
see the benefits of doing the right things in the proper way.
The focus on strong budgetary control has resulted in savings
being delivered and close control of spend has led to net debt
being much lower than anticipated as we seek to deliver tangible
value-for-money improvements.

"We are confident that continuing to build on this will give us
not only a financial rigor that can be relied upon but also a
railway of which we can be proud."

Chief Executive John Armitt concluded: "During the last year,
Network Rail's 30,000 employees have taken considerable strides
towards our objective of delivering a safe, reliable and
efficient railway.

"The year to come will see Network Rail's employees continue to
work hard to meet our objectives as we target a further
substantial reduction in delays and further efficiency savings.
The rebuilding of the railway goes on, progress is good, and
passengers and train and freight operators are now seeing real
benefits.  We are determined to deliver further improvements.

"I thank our people for their commitment and energy over the last
12 months.  I would also like to thank the freight and train
operators who have worked so hard to help us deliver the
turnaround this year.  Working together in partnership with our
customers is the best way to deliver success for the industry and
I am grateful for their support."

CONTACT:  NETWORK RAIL LIMITED
          40 Melton St.
          London
          NW1 2EE, United Kingdom
          Phone: +44-20-7557-8000
          Fax: +44-20-7557-9000
          Web site: http://www.networkrail.com


PREMIER FOODS: Trading Picking up; Cost-cutting Moving Ahead
------------------------------------------------------------
At the Annual General Meeting of Premier Foods plc, Chairman
David Kappler said: "Premier Foods is pleased to announce that
current trading for the grocery business has continued to improve
after the slow start to the year we reported in March, and that
the overall trading outlook for the Group remains in line with
our expectations.

"We remain confident that the Group's full year results will be
in line with our strategic targets, underpinned by a strong
pipeline of new product and category development which will help
to drive branded sales growth in the second half of the year and
beyond.  Our cost reduction program is progressing to plan.

"The Bird's Custard and desserts business, which we acquired from
Kraft in February 2005, is trading in line with our assessment at
the time of the acquisition and the integration of production
into our Knighton factory is progressing well.  We are
enthusiastic about the potential for this business under our
ownership.

"Earlier this week, we were pleased to announce that Premier have
signed a five-year agreement with Cadbury Trebor Bassett under
which Premier will continue to manufacture instant cocoa-based
hot beverages for Cadbury from May 2006.  The anticipated
financial impact of moving to the new agreement is in line our
expectations.

"MBM continues to trade in difficult conditions.  The effect of
the supplier rationalization by the major retailers, which we
referred to in March, will impact on the sales and profitability
of the business over the second half of the year.  Since that
time we have acquired additional volume, which will benefit the
latter part of the 2005/06 potato season.  This, together with
our restructuring of the company's packing operations to re-align
capacity with demand, should lead to improved performance in
2006.

"In relation to the Sudan 1 product recall, our evaluation of the
maximum quantum of the exposure is supported by the claims
experience we have seen to date and our assessment of the
insurance position remains unchanged.  As a consequence, the
Group continues to believe it has no material financial exposure
in relation to this matter.

"Premier is well positioned in the consumer market, with a solid
base of branded products with excellent market shares.  Its cost
cutting initiatives and tight operational controls continue to
improve margins and benefit cash flows.  We are confident that
this focus will enable the group to continue to build on its
strong platform over the medium to long term and will provide the
freedom to invest, when and where the right opportunities occur,
to continue building a strong U.K. branded business, delivering
value to our shareholders."

CONTACT:  PREMIER FOODS PLC
          28 The Green, Kings Norton
          Birmingham
          B38 8SD, United Kingdom
          Phone: +44-1727-815-850
          Fax: +44-1727-815-982
          Web site: http://www.premierfoods.co.uk

          Robert Schofield, Chief Executive
          Paul Thomas, Finance Director
          Gwyn Tyley, Investor Relations Manager
          Phone: +44 (0) 20 7638 9571

          CITIGATE DEWE ROGERSON
          Michael Berkeley
          Sara Batchelor
          Anthony Kennaway
          Phone: +44 (0) 20 7638 9571


QUICK FRAME: Cattles Invoice Finance Appoints Receiver
------------------------------------------------------
Cattles Invoice Finance Limited appoints Paul Andrew Whitwam and
Gary Edgar Blackburn (Office Holder Nos 8346, 6234) joint
administrative receivers for Quick Frame Sales Limited (Reg No
04319654, Trade Classification: 11).  The application was filed
Sept. 20, 2004.  The company manufactures and sells uPVC
products.

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


REGUS GROUP: Trading in Line with Expectations
----------------------------------------------
At the Annual General Meeting of Regus Group plc held Thursday,
Chairman John Matthews said: "I am pleased to report that Regus'
performance in the year to date is in line with the Board's
expectations and continues the progress made by the Company.  We
have seen good improvement in trading and free cash flow
generation.

"In the first quarter, Revenue Per Available Workstation (REVPAW)
increased by 9.4% over the same period last year (on a pro-forma
basis including HQ).  This growth was achieved through a
combination of occupancy improvement and workstation price
growth.  Our Meeting Room and Virtual Office businesses have
continued to experience double-digit growth.

"In the year to date, all regions reported month on month
improvements in revenue with EMEA showing good progress and the
U.S. performance continuing to benefit from the acquisition of HQ
Global Inc.

"The Group has already secured 80% of its budgeted workstation
turnover for 2005.  In addition, the rolling 12-month forward
order book is 14% higher than the same period last year on a
comparable basis.

"There remains a continued focus and selective approach to
acquisitions and new center investment.  During the year, new
centers have been added in Japan, India and Korea and we have
recently made a small acquisition in Mexico.  In addition, new
centers are planned for China, Australia and Russia.  It is
anticipated that these will commence trading in the second half
of this year and start contributing early next year.

"The Group has made an early prepayment of US$20 million (GBP10.5
million) on its US$ term debt."

Regus Group plc will announce its interim results for the six
months ended 30 June 2005 in late August 2005.

CONTACT:  REGUS GROUP PLC
          3000 Hillswood Dr.
          Chertsey
          Surrey KT16 0RS, United Kingdom
          Phone: +44-1932-895-500
          Fax: +44-1932-895-501
          Web site: http://www.regus.com


REINSURANCE ENTITY: Members Decide to Wind up Firm
--------------------------------------------------
At the extraordinary general meeting of the members of
Reinsurance Entity No.1 Limited on May 14, 2005 held at the
offices of SPV Management Limited, Level 11, Tower 42,
International Financial Centre, 25 Old Broad Street, London EC2N
1HQ, the special resolution to wind up the company was passed.
Ian Cadlock of Tenon Recovery, Lyndean House, 43-46 Queens Road,
Brighton, East Sussex BN1 3XB has been appointed liquidator of
the company.

CONTACT:  TENON RECOVERY
          Lyndean House, 43-46 Queens Road,
          Brighton, East Sussex BN1 3XB
          Phone: 01273 725566
          Fax: 01273 724502
          Web site: http://www.tenongroup.com


RENTOKIL INITIAL: Shareholders Approve Reorganization
-----------------------------------------------------
At a meeting of Rentokil Initial plc shareholders, convened by
the High Court of England and Wales, the proposed scheme of
arrangement under section 425 of the Companies Act 1985 to
introduce a new listed holding company, Rentokil Initial 2005 plc
(to be renamed Rentokil Initial plc upon the Scheme becoming
effective), was duly approved.  Details of the Scheme and the
notice of the Court Meeting are set out in the circular posted to
Rentokil Initial shareholders on 26 April 2005.

The vote was conducted by way of a poll and the results were:

                     By number  %     By shareholding       %

Votes in favour      3,700    93.7%   1,130,217,543       99.95%

Votes against        248       6.3%         543,995        0.05%

Extraordinary General Meeting

At an Extraordinary General Meeting of Rentokil Initial
shareholders held immediately after the Court Meeting, a special
resolution approving various matters to give effect to the Scheme
was also duly passed (on a show of hands).

Details of the resolution are contained in the notice of the
Extraordinary General Meeting set out in the circular posted to
Rentokil Initial Shareholders on 26 April 2005.

The Scheme remains subject to the satisfaction of certain
conditions, including the sanction of the High Court at a hearing
expected to be held on 20 June 2005.

Subject to the satisfaction of such conditions, the Scheme is
expected to become effective on 21 June 2005 and the issued
ordinary share capital of New Rentokil Initial is expected to be
admitted to the Official List and to trading on the London Stock
Exchange's market for listed securities at 8:00 a.m. on 21 June
2005.  It is also expected that Rentokil Initial ordinary shares
will be delisted at that time.

A further announcement will be made following the Court hearing.

CONTACT:  RENTOKIL INITIAL PLC
          Felcourt
          East Grinstead
          West Sussex RH19 2JY
          Phone: +44-1342-833-022
          Fax: +44-1342-326-229
          E-mail: pr@rentokil-initial.co.uk
          Web site: http://www.rentokil-initial.com


RENTOKIL INITIAL: Recommends 10% Increase in Annual Dividend
------------------------------------------------------------
Financial summary:

(a) trading for the four months was largely as expected.  The
    year-on-year impact of the significant P&L investments,
    which have been previously announced, as well as the ongoing
    challenges of a difficult, price competitive market place,
    have led to a deterioration in trading results;

(b) turnover from continuing operations increased by 1.8% at
    constant 2004 average exchange rates;

(c) profit before tax and from continuing operations, on a
    comparable amortization of provisional IFRS basis, declined
    by 16.5% at Customer Lists constant 2004 average exchange
    rates;

(d) contract portfolio increased by an annualized GBP38.3
    million at constant 2004 average exchange rates; and

(e) operating cash flow was in line with the company's
    expectations.

2005 Trading and Prospects

Brian McGowan, non-executive chairman, said: "In trading terms,
the year has started off largely as expected, with a
deterioration in profits compared with the first four months of
2004.  This was due to the full effect of the significant
increases in the investment in sales, marketing, service, I.T.
and H.R., which were progressively fed in from May 2004 as well
as the ongoing challenges of a difficult, price competitive
market place.  These trends are likely to continue into the
second half.

"Most of the segments with a contract portfolio dimension have a
number of business units which are starting to show progress but,
in overall terms, these have not yet produced the scale and
consistency to make a noticeable difference to the size and shape
of the overall contract portfolio.

"The benefits of the investments made should start to come
through progressively as the second half of 2005 unfolds,
although the board remains of the view that the year as a whole
is likely to give a weaker performance than in 2004.

"The board restates its intention, in the absence of unforeseen
circumstances, to recommend an increase in the dividend for 2005
of a further 10% to 7.38 pence per share."

        Segmental Commentary - Continuing Operations

Hygiene

Total Hygiene turnover grew by 2.4% with operating profit down by
11.3%.  Hygiene Services turnover was up by 2.2% with operating
profit down by 11.5%.  Contract portfolio net gain was GBP17.2
million, with GBP11.1 million of this coming from acquisitions.

Within the total turnover, washroom was flat, garments increased
by 3.2%, floorcare and linen each increased by 2.1%, while other
hygiene grew by 10.4%.

Turnover grew by 2.7% in continental Europe and by 4.9% in Asia,
Pacific and Africa, while North America was flat.

In the U.K., turnover was flat, although operating profit was
significantly lower as management continued to re-organize the
business by separating the washroom and floorcare activities from
those of linen and garments.

Pest Control turnover was up by 3.2% with operating profit down
by 10.9%.  Contract portfolio net gain was GBP2.0 million,
including GBP0.2 million from acquisitions.

Including the limited benefit of acquisitions, turnover in North
America and Asia, Pacific and Africa grew by 16.9% and 7.9%
respectively.  Continental Europe increased by 2.6%, whereas the
U.K. regressed by 1.1%.

Security

Total Security turnover increased by 4.4% while operating profit
fell by 11.3%.

Electronic Security turnover grew by 6.7% with operating profit
declining by 6.7%.  Contract portfolio net gain of GBP1.5 million
of which GBP1.3 million came from acquisitions.

Assisted by acquisitions, turnover in continental Europe and the
U.K. increased by 7.1% and 6.4% respectively, while the embryonic
U.S. business produced organic growth of 6.5%.

Manned Guarding turnover increased by 2.7% while operating profit
fell by 25.1% with the U.K., in particular, where we have
recently changed the managing director, experiencing tough market
conditions, compounded by the lead up to guard licensing. The
contract portfolio showed an organic increase of GBP6.6 million,
all of which was organic.

Continental Europe and the U.K. produced similar levels of
turnover growth at 4.8% and 5.2% respectively, whereas North
America was flat.

Facilities Management

Total Facilities Management turnover fell by 1.3%, with operating
profit falling by 11.4%.

Facilities Management Services turnover fell by 2.6%, the growth
in continental Europe, Asia, Pacific and Africa and North America
failing to compensate for a 3.8% decline in the core U.K.
business.  In very competitive market conditions operating profit
fell by 11.5%. The contract portfolio grew by GBP8.2 million
without any benefit from acquisitions.

Tropical Plants turnover grew by 3.8%, while operating profit
fell by 10.6%.  Contract portfolio net gain of GBP3.8 million was
largely as a result of acquisitions.

All four geographic regions showed turnover growth, specifically
North America 6.3%, Asia, Pacific and Africa 3.5%, the U.K. 1.0%
and continental Europe 0.8%.

Conferencing had an operating profit decline of 11.5% on flat
turnover, January, in particular, being very poor with a very
slow build-up after the Christmas/New Year break.  More
encouragingly, subsequent months have shown an improvement, with
April much improved on the first quarter.  The contract portfolio
declined by GBP1.0 million, albeit this does not include a major
contract signed with BMW, which however, will not generate
billings until 2006.

Parcels Delivery

Following the disposal of the business in Zimbabwe, turnover in
the U.K. business increased by 1.7%, with operating profit
falling by 14.5% due, like Conferencing above, to a very slow
January compounded by pressure on rates, reduced demand in the
I.T. and mobile phone sectors and the continuing trend of an
increasing proportion of non-premium, next-day consignments.

                        Other Items

Contract Portfolio

The annualized value of the contract portfolio for continuing
operations (based upon unaudited, pro-forma management
information) increased by GBP38.3 million in the four month
period with GBP16.1 million of this coming from acquisitions.

Acquisitions

In the four-month period to 30 April eleven acquisitions were
made at a total cost of c. GBP23 million.  Since May 1 a further
three acquisitions have been made for c. GBP5 million.  Aggregate
annualized turnover from these fourteen acquisitions in Hygiene,
Security and Tropical Plants in the U.K., Continental Europe,
North America and Asia, Pacific is estimated at c. GBP23 million.
The largest single acquisition was that of a leading textile
services company in Austria with annualized turnover of c. GBP11
million, this being some four times the size of Rentokil
Initial's existing business in that country.  In addition to the
above, GBP5.0 million has been spent to buy out a minority
shareholding in the French textile services business.

Disposals

Agreement has been reached on the sale of a portion of the loss
making hospital textiles business in Germany with 2004 turnover
of c. GBP7 million (representing some 40% of the activity).  We
continue to review the future of the remaining 60% of the
activities in this sub-segment.  Within U.K. Hygiene,
negotiations for the disposal of the linens and garments
activities are ongoing.

Since May 1 the company has sold its parcels delivery business in
Zimbabwe, this business having generated turnover in 2004 of some
GBP4.0 million.

Operating Cash Flow has been in-line with expectations.

New Holding Company

The company is currently on course to complete the formation of
the new holding company by the original target date of 1 July
2005.  As previously indicated, this process is subject to
shareholder approval at meetings to be held immediately following
the AGM on 26 May.

International Financial Reporting Standards (IFRS)

As previously indicated, we continue to make good progress on the
transition to IFRS.  There are no further significant
developments to report in this area at this stage, other than an
improved understanding of the potential effects of the current
interpretations of IAS 39, particularly in the context of 'mark
to market' adjustments, including those in respect of the option
element of the Ashtead convertible loan note.

The company expects to present a full reconciliation between the
2004 first half and full year U.K. GAAP results and the IFRS
adjusted results early in the second half of 2005, prior to the
scheduled 2005 interim results announcement, which will be on a
full IFRS basis.

CONTACT:  RENTOKIL INITIAL PLC
          Felcourt
          East Grinstead
          West Sussex RH19 2JY
          Phone: +44-1342-833-022
          Fax: +44-1342-326-229
          E-mail: pr@rentokil-initial.co.uk
          Web site: http://www.rentokil-initial.com


ROYAIR LIMITED: Appoints Begbies Traynor Administrator
------------------------------------------------------
I. E. Walker (IP No 6537) and S. R. Haskew (IP No 8988) have been
appointed joint administrators for Royair Limited.  The
appointment was made May 9, 2005.  Its registered office is
located at Balliol House, Southernhay Gardens, Exeter EX1 1NP.

CONTACT:  BEGBIES TRAYNOR
          Balliol House,
          Southernhay Gardens,
          Exeter EX1 1NP
          Web site: http://www.begbies.com

          BEGBIES TRAYNOR
          58 Queen Square,
          Bristol BS1 4LF
          Phone: 0117 929 4800
          Fax:   0117 922 0114
          Web site: http://www.begbies.com


STERLING CAPITAL: Members Hire Liquidators from Begbies Traynor
---------------------------------------------------------------
At the extraordinary general meeting of the members of Sterling
Capital Finance Plc on May 11, 2005 held at Minerva House, Lower
Bristol Road, Bath BA2 9ER, the special resolutions to wind up
the company were passed.  Simon Robert Haskew and Ian Edward
Walker of Begbies Traynor, 58 Queen Square, Bristol BS1 4LF have
been appointed joint liquidators of the company.

CONTACT:  BEGBIES TRAYNOR
          58 Queen Square,
          Bristol BS1 4LF
          Phone: 0117 929 4800
          Fax:   0117 922 0114
          Web site: http://www.begbies.com


TC COOMBS: Creditors to Convene Late Next Month
-----------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

                 IN THE MATTER OF TC Coombs & Co.

Notice is hereby given, pursuant to section 146 of the Insolvency
Act 1986, that a Meeting of the Creditors of TC Coombs & Co. will
be held at 8 Salisbury Square, London EC4Y 8BB, on June 30, 2005,
at 10:30 a.m. for the purposes of receiving the report of the
Liquidator of the winding-up and determining whether the
Liquidator should have his release under section 174 of the
Insolvency Act 1986.

Proxy forms, if applicable, must be lodged at KPMG LLP, 8
Salisbury Square, London EC4Y 8BB on or before June 29, 2005.

R. Smith, Liquidator
May 12, 2005

CONTACT:  KPMG LLP
          8 Salisbury Square
          London EC4Y 8BB
          Phone: (020) 7311 1000
          Fax: (020) 7311 3311
          Web site: http://www.kpmg.co.uk


TRAVEL-HOLIDAYS: Winding-up Hearing Set June
--------------------------------------------
The Secretary of State for Trade and Industry has filed petitions
in the High Court to wind up Travel-Holidays House Limited, and
its subsidiary, Travel Holidays House UK Limited.

According to the Creditman, the petition came following an
investigation conducted by the Department for Trade and
Industry's Companies Investigation Branch under Section 447 of
the Companies Act 1985.

The Official Receiver will serve as provisional liquidator,
pending the results of the hearing on June 20.

The London-based Travel-Holidays operated as an airline ticket
agent, while its subsidiary offered visa processing and tour
packages, among other services.

CONTACT:  TRAVEL-HOLIDAYS HOUSE LIMITED
          Cottrell House, 53 - 63 Wembley Hill Road
          Wembley, Middlesex, HA9 8BE

          TRAVEL HOLIDAYS HOUSE UK LIMITED
          Suite 21, London House, 53-54 Haymarket
          London, SW1Y 4RP
          Contact:
          Yvette Mukendi Tshilumba a.k.a.
          Yvette Pauline Kaseka Mukendi, Director

          THE INSOLVENCY SERVICE
          Public Interest Unit
          PO Box 203
          21 Bloomsbury Street
          London
          WC1B 3SS
          Phone: 0207 637 1110


UNIQ PLC: Appoints Cadbury Executive as Director
------------------------------------------------
Dr. Matthew Litobarski will be joining the Board of Uniq plc on
June 1, 2005 as a Non-executive Director.

Mr. Litobarski is President, Global Supply Chain, for Cadbury
Schweppes Plc, having spent 19 years with Cadbury in various
senior management positions.  Prior to his current role, he was
President of the European Beverages Division, with overall
responsibility for the businesses in Continental Europe and
Mexico.  He also led the Cadbury Wedel business in Poland
following its acquisition in 1999.

Nigel Stapleton, Chairman, said: "We are delighted to welcome
Matthew to the Board.  His very strong continental European
experience in FMCG and branded products will be of great benefit
to us."

Victor Scherrer will, as previously announced, be standing down
from the Board as a Non-Executive Director after 9 years service.
He will retire on May 31, 2005.

CONTACT:  UNIQ PLC
          1 Chalfont Park
          Gerrards Cross
          Buckinghamshire SL9 0UN
          Phone: +44-1753-276-000
          Fax: +44-1753-276-071
          Web site: http://www.uniq.com

          GAINSBOROUGH
          Julian Walker
          Phone: 020 7190 1705


VEOS UK: Sets Creditors Meeting Friday
--------------------------------------
The creditors of Veos UK Limited will meet on June 3, 2005 at
11:00 a.m.  It will be held at the offices of Smith & Williamson
Limited, Prospect House, 2 Athenaeum Road, London N20 9YU.

Creditors who want to be represented at the meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Smith & Williamson Limited, Prospect House, 2
Athenaeum Road, London N20 9YU not later than 12:00 noon, June 2,
2005.

CONTACT:  SMITH & WILLIAMSON LIMITED
          Bartlett House
          9-12 Basinghall Street, London EC2V 5NS
          Web site: http://www.smith.williamson.co.uk


WACTON LIMITED: Liquidator to Present Report Late June
------------------------------------------------------
            IN THE MATTER OF THE INSOLVENCY ACT 1986

                               and

                 IN THE MATTER OF Wacton Limited

A Final Meeting of Creditors of Wacton Limited has been summoned,
under section 146 of the Insolvency Act 1986, for the purpose of
receiving the Liquidator's report of his administration of the
liquidation, approving the Liquidator's receipts and payments
account, granting the Liquidator's release and any other business
including matters provided by section 331(2) of the Insolvency
Act 1986.

The Meeting will be held at Deloitte & Touche LLP, 1 City Square,
Leeds LS1 2AL, on June 24, 2005, at 10:30 a.m.  A Creditor
entitled to attend and vote may appoint a proxy to attend and
vote on his or her behalf.  A proxy need not be a Creditor of the
Debtor.  A proxy form, if to be used, must be lodged with me at 1
City Square, Leeds, West Yorkshire LS1 2AL, not later than 12:00
noon on the day prior to the Meeting.

A. M. Martin, Liquidator
May 18, 2005

CONTACT:  DELOITTE & TOUCHE LLP
          1 City Square
          Leeds LS1 2AL
          Phone: +44 (0)113 243 9021
          Fax: +44 (0)113 244 5580
          Web site: http://www.deloitte.com


WM MORRISON: Has New Group Finance Director
-------------------------------------------
Richard Pennycook, 41, has accepted Wm Morrison Supermarket plc's
offer for him to become Group Finance Director.

Mr. Pennycook is currently Group Finance Director of RAC Plc, the
quoted specialist motoring and vehicle management company which
was recently acquired by Aviva.  He will join Wm Morrison on
October 1, 2005.

Before joining RAC Plc, Mr. Pennycook was Group Finance Director
of HP Bulmer Holdings Plc.  Other senior appointments include
Chief Executive Officer and Finance Director of Welcome Break
Holdings Limited, Group Finance Director of Laura Ashley Plc and
Finance Director of JD Wetherspoon Plc and various positions at
Allders Plc.

He was also a non-executive director of Richer Sounds Plc for six
years.

Mr. Pennycook qualified as an accountant with Arthur Andersen
after receiving a 1st class degree in Economics and Accounting
from Bristol University.

Bob Stott, Chief Executive of Wm Morrison, said: "We are
delighted to appoint Richard.  He has a very wide experience in
managing complex financial issues together with handling investor
relations."

Richard Pennycook said: "Morrison is a great company with a great
brand and I look forward to working with the Morrison team."

CONTACT:  WM MORRISON SUPERMARKETS PLC
          Hilmore House
          Thornton Road
          Bradford
          West Yorkshire
          England
          BD8 9AX
          Phone: +44 1274 494166
          Fax: +44 1274 494831
          Web site: http://www.morereasons.co.uk


WM MORRISON: Like-for-like Sales in First 15 Weeks this Year Up
---------------------------------------------------------------
In conjunction with the annual general meeting, the Directors of
Wm Morrison Supermarkets plc has released sales figures for the
15 weeks ended 15 May 2005 and provided further background to the
trading statement issued on 13 May 2005.

Sales

Total group like-for-like sales in the first 15 weeks of the
current financial year are up 5.4% or 2.3% excluding fuel.  This
performance is in line with the Board's expectations and shows
improvement over the sales performance for the first six weeks of
the current financial year (which was up 4.1% or 1.2% excluding
fuel).

The 15-week like for like performance is made up:

(a) sales in the 108 converted Safeway stores open for at least
    one full week's trading continue to be very encouraging and
    excluding fuel are 12.5% above last year with a 21.3%
    increase in customer numbers.  Average sales per square foot
    has now increased to GBP18 per square foot from GBP14.77 and
    is well on target to meeting the three year target sales
    density for Safeway converted stores of GBP19.72.  The
    company is also encouraged by the relative consistency of
    these uplifts between Northern and Southern stores;

(b) like for like sales increase in the core Morrisons estate of
    1.9% in total but down 2.3% excluding fuel.  As previously
    reported, this figure has been impacted by competition from
    divested stores and cannibalization from Safeway conversions
    and compares with a very strong trading period last year.
    The 53 Morrisons stores that were unaffected by adjacent
    conversion of divestment achieved a total like for like
    sales growth of 5.7% and 1.5% excluding fuel; and

(c) during the same period it is pleasing to report that the
    trend in like for like sales of Safeway stores awaiting
    conversion to the Morrisons fascia has continued to improve.
    Having declined almost 7% during the last financial year,
    the first six weeks showed an overall gain of 1.3% (down
    0.5% excluding fuel).  After 15 weeks the sales trends have
    moved further forwards with overall growth of 4.4% (3%
    excluding fuel).  Underlying this improvement has been an
    encouraging increase in customer numbers which are up 8.2%
    over the comparable period last year.

Gross Margin

At the time of the preliminary announcement in March 2005, the
company said that near term improvement in gross margins would be
constrained by industry conditions.  This continues to be the
case.  The gross margin reported for the first half of the
previous financial year was flattered by the phased reduction in
Safeway prices and by a one-off benefit of GBP47 million as it
started to accrue for supplier income.  The Company expects most
of these factors to be worked through during the course of this
financial year allowing the improved buying terms, which it has
been negotiating, and the expansion of its vertical integration
capabilities, to become more visible during 2006/2007.

Store Conversion Process

The company is fully on track to complete the conversion process
by November 2005, by which time it will have converted almost 230
former Safeway stores to the Morrisons format within 18 months.
This will result in a substantially freehold property portfolio
of some 360 Morrisons stores across the U.K.  So far this year,
55 stores have been converted on top of the 57 conversions
completed during 2004.  The average cost of conversion is running
at GBP1.5 million per store of which approximately two-thirds
will be treated as an exceptional item.

Distribution

Since the acquisition of Safeway, the company has had to operate
two separate distribution systems.  The Morrisons distribution
system has been enlarged to service both the core Morrisons
estate and the converted stores.  In parallel the existing
Safeway distribution system has had to be retained to service
Safeway stores until either conversion or disposal.  This has
given rise to a major increase in group distribution costs, much
of which is fixed in nature, and which cannot be reduced
significantly until the conclusion of the conversion and disposal
process.

Once the conversion process has been completed in November 2005,
the company expects to start making significant savings through
rationalization of existing facilities and optimizing the routing
of deliveries.

IT and Administration

As with distribution, the company has also had to operate two IT
systems since it acquired Safeway.  Total harmonization of IT
hardware and software will allow additional savings in 2006/2007.
In addition, the final closure of Hayes by the end of the year
will allow a further headcount reduction of 450.

Staff Costs

During the last financial year, staff costs rose to 13.1% of
turnover as a result of the integration process.  At the time of
the preliminary announcement, the company indicated that these
costs would be likely to increase near term, particularly as it
stepped up the pace of store conversion from 3 to 4 per week.
Higher staffing levels within converted stores have given rise to
a significant increase in the staff to sales ratio and this
factor will continue to affect results through the current year.
In 2006/2007, following the completion of the conversion program
and with growing sales momentum through converted stores, this
ratio will fall towards more normal operating ratios.
Store and Property Disposals

By the time the process of completing the remaining store and
property sales has completed, the company expects total proceeds
of over GBP1.3 billion.  The overall estate will again return to
being over 90% freehold having dropped to 78% immediately
following the Safeway acquisition.  The inherited Safeway estate
included a number of leasehold properties carrying a significant
ongoing rent burden.  As a result of our ongoing store divestment
program, the company expects to reduce its rental outgoings by a
further GBP20 million in 2006/2007.

New Store Development

The company is opening seven new stores during the current year.
The new store at Hamilton opened at the beginning of the month
and is already trading well.  Next month, it will open in
Glasgow -- at Auchinlea with a further store at Cardonald opening
in August.  Subsequent months will see new store openings in
Paisley, Livingston, Strood and Gloucester.

It remains committed to an active new store expansion program and
are working on a program of openings for 2006/2007 which is
looking promising with eight new stores already consented and a
number of further applications pending.

Capital Expenditure

Capital expenditure for the current financial year is expected to
be around GBP650 million as previously indicated.  Other than new
stores, the significant items of expenditure include the new head
office in Bradford, which it expects to be completed by early
2006, the new regional distribution depot at Kettering, a new
frozen food facility at Corby and further expansion of its
vertically integrated operations.

For 2006/2007 the level of capital expenditure is anticipated to
reduce to around GBP400 million, comprising primarily new store
developments and further investment to optimize its distribution
footprint and production capacity.

Board and Governance

Deputy Chairman David Jones said: "Following the Board changes in
March, the Chairman has stepped down from the Morrisons
operations board and handed over the chairmanship to Bob Stott,
Group Chief Executive.  The Chairman has previously stated his
commitment to seeing through the integration of Safeway and this
remains the case.  The Board therefore expects to make a
statement about the Chairman's intentions and the company's
succession plans at the time of the next AGM.  Bob Stott has also
committed to completing the Safeway integration and has deferred
his retirement until spring 2007.

"The Board has asked me to lead the search for a further four
non-executive directors and we have been working closely with an
external search agency to identify suitable candidates.
Discussions are currently underway with a variety of candidates
and the Board is committed to achieving a balance between those
with particular specialist knowledge and individuals who have
significant experience of applying insight to a broad range of
issues at quoted public company board level.

"Once the non-executive appointments have been made, the company
intends, in line with the Revised Combined Code, that the Audit
and Remuneration Committees will consist solely of non-executive
directors who will also comprise the majority of the Nominations
Committee.

Financial Outlook

"As we stated at the time of the preliminary announcement the
considerable increase in the size of the group following the
acquisition of Safeway, the complexities associated with the
acquisition, the need to standardize procedures and the historic
problems with the inherited Safeway accounting system have
together put significant strain on the existing accounting
resource.  This is impacting the ability of the Board to forecast
likely trends in profitability and the Directors are therefore
not currently in a position to provide reliable guidance on the
level of profitability for the year as a whole.

"On 13 May 2005, the Board issued a trading announcement which
indicated that it expected operating margins to run significantly
short of last year's level for much of 2005.  Based on current
financial trends this remains the Board's expectation.  However,
the level of operating profit to be reported for the current
financial year will remain unclear until the completion of
further detailed work on the financial forecasts which is
currently underway.  The Board has asked KPMG to assist with this
work.  The Board expects to be in a position
to provide clearer guidance at the time of its half year results.
These are expected to be released in the second half of October,
which will allow review by the new finance director. The Board
will, however, provide a further sales update at the end of July.

"In 2006/2007 there remains every indication that financial
performance will improve significantly following completion of
the conversion process and as the benefits of the actions taken
to normalize the cost structure of the business are reflected in
improving margins.

Prospects

"2005/2006 is proving to be a challenging year.  However, by the
end of November we will have converted all the ongoing stores to
the Morrisons format, which will allow the elimination of double
running costs and provide opportunities to achieve additional
economies of scale.  We have always maintained that the
Safeway acquisition was a property deal.  This has proved to be
the case and to achieve the conversion of 230 Safeway stores in
less than 18 months is in itself a major achievement.

"The performance of the converted stores is encouraging in terms
of both customer flow and sales per square foot.  The existing
Morrisons stores are holding their own in a highly competitive
market place and in comparison with a particularly successful
period in the prior year.

"The Board is confident that Morrisons can reinforce its position
as a leading supermarket chain continuing to provide our
customers with products that are well priced, the best value, and
with the good service that is Morrisons hallmark."

CONTACT:  WM MORRISON SUPERMARKETS PLC
          Hilmore House
          Thornton Road
          Bradford
          West Yorkshire
          England
          BD8 9AX
          Phone: +44 1274 494166
          Fax: +44 1274 494831
          Web site: http://www.morereasons.co.uk


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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
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Maryland USA.  Larri-Nil Veloso, Ma. Cristina Canson,
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Copyright 2005.  All rights reserved.  ISSN 1529-2754.

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