TCREUR_Public/100416.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, April 16, 2010, Vol. 11, No. 074

                            Headlines



F R A N C E

RENAULT SA: Volvo Can Rely on Swedish Investors if Stake Sold


G E R M A N Y

ARCANDOR AG: Karstadt Could Continue Operations Until Christmas
CDV SOFTWARE: Files for Insolvency in Frankfurt Court


G R E E C E

* GREECE: German Economist Mulls Suit Over Rescue Package


H U N G A R Y

* HUNGARY: Construction Company Insolvencies Remain High


I R E L A N D

HUGHES & HUGHES: Founder Intends to Reopen Some Dublin Stores

* IRELAND: ESRI Dismisses Sovereign Debt Default Threat


I T A L Y

SNIA SPA: Declared Insolvent; Debt Restructuring Plan Rejected


K Y R G Y Z S T A N

ASIAUNIVERSALBANK JSC: Moody's Lowers Deposit Ratings to 'Caa2'


L I T H U A N I A

BANKAS SNORAS: Fitch Affirms Individual Rating at 'D/E'


R O M A N I A

* ROMANIA: Bank Insolvency Procedures to Require BNR Approval


R U S S I A

AEROFLOT OJSC: Fitch Assigns 'BB+' Rating on Senior Bonds


U K R A I N E

YASYNOVATSKY MACHINERY: Court Starts Bankruptcy Proceedings


U N I T E D   K I N G D O M

LIVERPOOL FOOTBALL: Goldman Sachs Pulls Out Bid
NORTHERN ROCK: FSA Imposes Fine on Former Execs for Hiding Debt
CDV SOFTWARE: Files for Insolvency in Frankfurt Court
GLOBAL CROSSING (UK): To Buy Back Senior Secured Notes
GLOBAL CROSSING (UK): Dec. Balance Sheet Upside Down by GBP214MM

WHITE TOWER: S&P Junks Rating on Class E Notes From 'B-'

* UK: Business Failures Down 0.5% in First Quarter 2010


X X X X X X X X

* EUROPE: EU Should Consider Harmonized Insolvency Rulebook

* BOOK REVIEW: Distressed Investment Banking - To the Abyss and




                         *********



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


RENAULT SA: Volvo Can Rely on Swedish Investors if Stake Sold
-------------------------------------------------------------
Reuters reports that Volvo Chairman Louis Schweitzer told business
daily Dagens Industri on Wednesday that the Swedish automaker
would have no trouble relying solely on its Swedish investors if
Renault decided to sell its stake in the company.

According to Reuters, Mr. Schweitzer, formerly the chief executive
of Renault, said the French car maker's partnership deal with
Daimler signed last week was not a problem for Volvo as it mostly
concerned the market for cars, not trucks.

Reuters notes Mr. Schweitzer said that Renault saw its alliance
with Japanese carmaker Nissan, in which it owns a 44.4% stake, as
more vital to its business than the investment in Volvo.

"The holding in Volvo could be sold if Renault encountered serious
financial difficulties," Reuters quoted Mr. Schweitzer as saying.

                          About Renault SA

Renault SA -- http://www.renault.com/-- is a France-based company
primarily engaged in the manufacture of automobiles and related
services.  The Company has two main areas of business activity:
the Automobile division, which handles the design, manufacture and
marketing of passenger cars and commercial vehicles, under
Renault, Renault Samsung Motors and Dacia brands, and the Sales
Financing division, which provides financial and commercial
services related to the Company's sales activities, and is
comprised of RCI Banque and its subsidiaries.  The Company
operates worldwide via a group of subsidiaries and dependant
companies, including wholly owned Renault SAS, 99.43%-owned Dacia,
44.3%-owned Nissan Motor and 20.7%-owned AB Volvo, among others.

                           *     *     *

Renault SA continues to carry long- and short-term corporate
credit and debt ratings of 'BB/B' from Standards & Poor's Ratigns
Services with stable outlook.  The ratings were lowered to their
current level from 'BBB-/ A-3' in June 2009.

As reported by the Troubled Company Reporter-Europe on June 23,
2009, S&P said Renault's financial profile was already hit by the
large increase in debt in 2008, and credit measures were weak
compared with what S&P generally considered to be commensurate
with a 'BBB-' rating.  S&P said that the company's financial
metrics were likely to deteriorate further and would probably not
return in the medium term to levels S&P considered consistent with
the previous rating.

"Our downgrade of Renault reflects our view that auto demand is
likely to remain very low in Europe in 2010, due to the weak
economic environment and the payback effect of the incentive
schemes that several European countries have adopted to date in
2009," said Standard & Poor's credit analyst Barbara Castellano.
"We believe these factors will continue to penalize Renault's
profitability."

Renault continues to carry a Ba1 long-term corporate family rating
and senior unsecured debt rating from Moody's Investors Services
with stable outlook.  The company's subordinated debt carries a
Ba2 rating from Moody's.


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


ARCANDOR AG: Karstadt Could Continue Operations Until Christmas
---------------------------------------------------------------
Alexander Huebner at Reuters reports that Arcandor AG's German
department store chain Karstadt could keep going until Christmas
if no buyer emerges before.

"We can easily get through Christmas alone, our financial planning
based on the current business development showed," Karstadt Chief
Restructuring Officer Thomas Fox told Reuters on Wednesday in an
interview.

Karstadt's core profit for the six months to the end of March had
been twice as high as expected, Reuters discloses.  Mr. Fox, as
cited by Reuters, said sales for the period were EUR2.2 billion
(US$3.01 billion).

Reuters relates on Monday, Karstadt's creditors granted the
company more time to find a buyer, softening the sales deadline
which had been set for end-of-April.  A fresh deadline has not
been set, and the board of creditors will have to approve new
dates, Reuters states.  Reuters notes a source close to the
creditors said that despite the change, time remains limited.

Reuters says with the initial deadline now gone, chances of a
breakup of Karstadt have faded.

According to Reuters, total claims in Karstadt's bankruptcy add up
to about EUR2.8 billion, and creditors can hope to recoup about 3%
of their individual claims.

                        About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group.  Its
three core business areas are tourism, mail order services and
department store retail.  The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt.  Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG.  It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle.  Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.

As reported by the Troubled Company Reporter-Europe, a local court
in Essen formally opened insolvency proceedings for Arcandor on
September 1, 2009.  The proceedings started for the Arcandor
holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.

Arcandor filed for bankruptcy protection after the German
government turned down its request for loan guarantees.  On
June 8, 2009, the government rejected two applications for help by
the company, which employs 43,000 people.  The retailer sought
loan guarantees of EUR650 million (US$904 million) from Germany's
Economy Fund program.  It also sought a further EUR437 million
from a state-owned bank.


CDV SOFTWARE: Files for Insolvency in Frankfurt Court
-----------------------------------------------------
Jas Purewal at Gamer/Law, citing Gamesindustry.biz, reports that
CDV Software Entertainment AG has filed for insolvency before the
district court in Frankfurt.

The reports CDV's insolvency comes soon after its victory over
Southpeak in a long-running UK legal battle by CDV against
Southpeak and its subsidiaries over alleged breaches of contract
and copyright infringement, which saw Southpeak being ordered to
pay substantial damages to CDV.

CDV Software Entertainment AG is a German console and PC
publisher.


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


* GREECE: German Economist Mulls Suit Over Rescue Package
---------------------------------------------------------
Madeline Chambers at Reuters, citing The Rheinische Post, reports
that Joachim Starbatty, a German economist, plans to launch a
legal challenge at the Constitutional Court against the euro zone
aid package for Greece agreed by finance ministers at the weekend.

Reuters relates Mr. Starbatty, a professor at Tuebingen
University, told the paper the aid package breached the EU's
Maastricht Treaty.

According to Reuters, The Rheinische Post said Mr. Starbatty
viewed the aid package as a subsidy which was forbidden as the
interest rate offered was under the market rate for Greek bonds.


=============
H U N G A R Y
=============


* HUNGARY: Construction Company Insolvencies Remain High
--------------------------------------------------------
MTI-Econews, citing figures from Creditreform Kft, reports that
the number of insolvency procedures remained high in Hungary's
construction sector during the first quarter of 2010.

According to the reports, the number of insolvency procedures in
the construction sector in the first quarter totaled 792 compared
with 2770 in 2009 and 2339 in 2008.

The report notes insolvency figures showed no improvement in the
accommodation-services and catering sector either, where the
number of proceedings totaled 255 in the first quarter after 873
in 2009 and 614 in 2008, or in the real estate and business-
services sector, where the number of liquidations amounted to 867
in the first quarter after 3073 in 2009 and 2190 in 2008.


=============
I R E L A N D
=============


HUGHES & HUGHES: Founder Intends to Reopen Some Dublin Stores
-------------------------------------------------------------
Caroline Madden at The Irish Times reports that Derek Hughes, the
founder of bookshop chain Hughes & Hughes, which went into
receivership in February, has put together a group of investors in
a move to reopen some of the chain's Dublin stores.

The report relates industry sources said Tuesday that Mr. Hughes
hoped to resume operating in as many as six of his former stores.

According to the report, to begin trading again, Mr. Hughes would
have to persuade at least some wholesale book distributors to
supply stock.  As many of his creditors expect to be significantly
out of pocket as a result of the chain's receivership, this will
involve substantial negotiation, the report says.

The report, however, notes a number of other interested parties
are believed to be in negotiations with landlords over the leases
of former Hughes & Hughes high-street stores.

It is understood that Eason is at an advanced stage of negotiation
in relation to stores considered to be in the most attractive
locations, the report states.


* IRELAND: ESRI Dismisses Sovereign Debt Default Threat
-------------------------------------------------------
John Murray Brown at The Financial Times reports that the Economic
and Social Research Institute on Monday dismissed a threat of a
sovereign debt default by Ireland as a result of its large bank
rescue.

According to the FT, the ESRI said the net cost to the state of
the bank bail-out could reach EUR25 billion (US$34 billion, GBP22
billion), or 15% of gross domestic product, which is in line with
the fiscal costs of banking crises in other economies.

The ESRI calculates the total recapitalization will be "at least"
EUR32 billion, although this will include the EUR3.5 billion
preference investment in both Bank of Ireland and Allied Irish
Bank, the FT says.

The EUR25 billion net cost is mainly the result of the large
capital injections into Anglo Irish Bank, the FT states.

The FT notes Alan Barrett, author of the ESRI report, said
Ireland's bigger worry was the size of the budget deficit, which
the ESRI estimates this year will rise, despite budget cuts, to
12% of gross domestic product, up from 11.8% in 2009.


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


SNIA SPA: Declared Insolvent; Debt Restructuring Plan Rejected
--------------------------------------------------------------
Chiara Remondini at Bloomberg News, citing newswire Ansa, reports
that a Milan court rejected a debt-restructuring proposal by Snia
SpA and declared the company insolvent.  Snia's shares were halted
in Milan pending news, Bloomberg says, citing the Italian
exchange.


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


ASIAUNIVERSALBANK JSC: Moody's Lowers Deposit Ratings to 'Caa2'
---------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local and
foreign currency deposit ratings of AsiaUniversalBank to Caa2 from
Caa1 and placed them on review for a possible further downgrade.
The E bank financial strength rating of the bank and Not Prime
short-term deposit ratings remain unchanged.

The rating action was triggered by (i) the severe political crisis
that hit the country last week, (ii) the subsequent decision of
the National Bank of the Kyrgyz Republic to take AUB under the
temporary administration for a period of up to six months and (ii)
the decision of the attorney of the city of Bishkek to seize AUB's
assets, effectively resulting into a deposit freeze on the bulk of
the bank's customer deposits.

"Although AUB was recently sanctioned by the attorney to restore
part of its operations, particularly in respect of repayment of
retail customer deposits up to a certain limit, and conducting
budget payments, Moody's remains concerned about the
sustainability of the bank's operations in the longer term," said
Semyon Isakov, a Moody's Assistant Vice President-Analyst and lead
analyst for this bank.

Moody's notes that if the political situation does not stabilize
or if AUB is unable to restore its operations in the short-term,
including the repayment of customer deposits in full, the ratings
of the bank are likely to be downgraded further.  The review for
further possible downgrade will therefore focus on the assessment
of potential loss for the bank's depositors and other creditors if
AUB does not fully restore its operations in the very near future.

Moody's previous rating action on AUB was on September 11, 2009,
when the rating agency upgraded the bank long-term deposit ratings
to Caa1with a stable outlook.  At that time, the E BFSR was
affirmed with a stable outlook.

Headquartered in Bishkek, AUB had IFRS total assets of
KGS22.3 billion (US$505 million) and reported shareholders' equity
(including minority interests) of KGS2.9 billion (US$66 million)
as at YE2009.  As at YE2009 AUB operated 36 full-service branches
and 53 point-of-sales across the Kyrgyz Republic.


=================
L I T H U A N I A
=================


BANKAS SNORAS: Fitch Affirms Individual Rating at 'D/E'
-------------------------------------------------------
Fitch Ratings has affirmed Lithuania-based Bankas Snoras' Long-
term Issuer Default Rating at 'B+' with a Stable Outlook.

Snoras' Long-term IDR of 'B+' reflects the limited probability of
support from the Lithuanian authorities, if required, in view of
the bank's relative importance to the domestic banking system.
Snoras' share of resident retail deposits at end-2009 was about
14% whilst its share of assets was about 7.5%.

The bank's Individual Rating of 'D/E', which Fitch also affirmed,
captures the challenging operating environment and weak corporate
governance in light of the group's sizable and relatively non-
transparent non-banking related transactions.  The rating further
reflects Snoras' material operating losses (if reported figures
are adjusted for non-recurring income), significantly deteriorated
asset quality and pressure on capital.  However, the rating also
takes into account the bank's large and so far stable retail
deposit franchise and adequate liquidity.

Since the onset of the economic downturn, Snoras' net interest
margin has been under notable pressure.  In 2009, it declined
significantly to 0.35% on a stand-alone basis on the back of
increased retail deposit rates and reduced interest income.  Fitch
believes it is likely that the pressure on the margin will remain,
at least in the near term.  The bank's asset quality deteriorated
sharply during 2009.  On a consolidated basis, impaired loans plus
performing but 90 days overdue loans increased to 25% at end-2009
from 5% a year before.  The bank's relatively low provisioning
ratio weighs on capitalization, as the unreserved impaired
loans/equity ratio increased to 74% at end-2009.  Fitch expects
that the level of impaired loans will continue to rise in 2010,
albeit at a more moderate pace.

The bank's primary source of funding comes from deposits which
accounted for 88% of liabilities at end-2009.  Snoras' liquidity
appears adequate and the loan/resident deposits ratio was
comfortable at 80% at end-2009.  The only public debt outstanding
are Eurobonds totalling LTL366 million (EUR106 million), due to be
repaid in May 2010, while the amount of liquid assets minus short-
term wholesale liabilities was LTL2,486 million at end-2009.

Snoras' shareholders have provided capital support to the bank.
In 2009, they contributed LTL52 million of subdebt and in Q210,
shareholders plan to inject LTL88 million of new equity which
would strengthen Snoras' total capital ratio by about one
percentage point.  The potential conversion of subordinated
liabilities into equity during 2010 is also being considered by
the shareholders.  However, capital will likely remain tight in
view of the still challenging macroeconomic environment,
relatively high proportion of uncovered NPLs and somewhat lower
capitalization compared to the sector average.

Snoras' Long-term IDR is likely to be driven by changes in
Lithuania's sovereign rating ('BBB'/Stable) or changes in Fitch's
view on the sovereign's propensity and/or ability to provide
support.  The bank's Individual Rating could be downgraded if
pressure on operating profitability and capital intensifies,
whilst an upgrade of the Individual Rating is unlikely at present.

The rating actions are:

  -- Long-term IDR: affirmed at 'B+'; Outlook Stable

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D/E'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B+'

  -- Senior unsecured: affirmed at 'B+'; assigned Recovery Rating
     of 'RR4'

At end-2009, Snoras was the fifth-largest bank in Lithuania by
total assets.  The bank is 67.28% owned by the Russian businessman
Vladimir Antonov and 25.01% by the Lithuanian businessman
Raimondas Baranauskas.  Snoras group includes Latvia's Krajbanka,
recently purchased investment and private banking group Finasta,
leasing company and others.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.


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R O M A N I A
=============


* ROMANIA: Bank Insolvency Procedures to Require BNR Approval
-------------------------------------------------------------
Ziarul Financial reports that under a new government ordinance,
the commencement of insolvency procedures by banks will require
the approval of the National Bank of Romania.

According to ZR, under the new ordinance, bankruptcy procedures
shall be commenced on an application filed by the indebted credit
institution or its creditors or the NBR.

ZF says when rejecting applications for bankruptcy, BNR shall
present its arguments.  When a bank is declared bankrupt, the
ordinance says, the depositors shall be paid back as a priority,
ZF discloses.

ZF notes the emergency ordinance was approved as a condition in a
stand-by financial arrangement with the International Monetary
Fund, in consultation with the BNR and the Romanian Association of
Banks.


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


AEROFLOT OJSC: Fitch Assigns 'BB+' Rating on Senior Bonds
---------------------------------------------------------
Fitch Ratings has assigned OJSC Aeroflot - Russian Airlines'
RUB12bn three-year bonds with 7.75% coupon rate a final National
senior unsecured rating of 'AA(rus)' and a final senior unsecured
local currency rating of 'BB+'.

The bonds, placed on the MICEX Stock Exchange, were issued under
two series, BO-01 and BO-02, each with a nominal value of
RUB6 billion.  It is the company's first bond issuance since 2002.

Aeroflot's Long-term foreign and local currency Issuer Default
Ratings are 'BB+', respectively, with Stable Outlooks.  Aeroflot's
Short-term foreign and local currency IDRs are 'B'.  Its National
ratings are Long-term 'AA(rus)' with a Stable Outlook and Short-
term 'F1+(rus)'.

The ratings of the Russian flag carrier benefit from a one-notch
uplift due to support provided by the Russian Federation
('BBB'/Stable/'F3'), which has a 51% direct ownership stake in
Aeroflot.  Fitch considers the strategic and operational ties
between the group and its parent to be relatively strong.


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


YASYNOVATSKY MACHINERY: Court Starts Bankruptcy Proceedings
-----------------------------------------------------------
BG Capital, citing UkrRudProm, reports that a Donetsk Economic
Court has initiated bankruptcy proceedings against Yasynovatsky
Machinery.

According to the report, the company's Press Secretary Ihor
Shparber, said the proceedings are a run-of-the-mill
reorganization that will see Yasynovatsky's legal status changed
from an Open Joint-Stock Company to a Limited Liability Company.


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


LIVERPOOL FOOTBALL: Goldman Sachs Pulls Out Bid
-----------------------------------------------
Goldman Sachs, which was putting together the bid to buy all or
part of Premier League club Liverpool, conducted due diligence
with the bankers for co-owners Tom Hicks and George Gillett Jr.
but then decided not to make the offer, Rob Harris at The
Associated Press reports, citing a person involved in the
negotiations.

The report says the group would have included Goldman Sachs as an
investor, as well as British and American institutional investors
and an Asian real estate developer.

Reuters notes Messrs. Hicks and Gillett are now preparing to
announce the appointment this week of Barclays Capital, the
investment arm of the bank that sponsors the Premier League, to
find a buyer for the club, which has debts of US$364 million.

Reuters relates that for more than two years, the club's U.S.
owners have been trying to attract investors to reduce the debt
resulting from their leveraged takeover.  Money raised also would
finance a new stadium to replace Anfield, Reuters states.

As reported by the Troubled Company Reporter-Europe on April 13,
2010, Reuters said Liverpool's owners are facing a demand to repay
GBP100 million (US$153 million) of the club's GBP237 million debt
to its lenders, Royal Bank of Scotland and U.S. bank Wachovia, in
July.  Citing a report by The Sunday Times, Reuters disclosed
Barclays would back a GBP300 million (US$458.8 million)
refinancing at Liverpool that would lead to the sale of the
Premier League club.

Liverpool Football Club and Athletic Grounds owns and operates one
of the more popular and most successful franchises in the UK
Premier League.  Known as The Reds, Liverpool has won 18 first
division titles and seven FA Cups since it was founded by John
Houlding in 1892.  In addition to the football club, the company
owns and operates Anfield Stadium, Liverpool's home ground.  The
company generates revenue primarily through sponsorships,
broadcasting fees, and ticket sales.  The company was acquired by
US businessmen George Gillett and Tom Hicks in 2007.


NORTHERN ROCK: FSA Imposes Fine on Former Execs for Hiding Debt
---------------------------------------------------------------
Katherine Griffiths and Michael Herman at The Times report that
the Financial Services Authority has fined two former senior
executives at Northern Rock a total of GBP644,000 for hiding debt
before the bank's near-collapse in September 2007.

The report relates that in one of its most severe punishments
against individuals, the FSA fined David Baker, Northern Rock's
former deputy chief executive, GBP504,000 and banned him from
taking any new roles at regulated financial institutions.  The
regulator also fined Richard Barclay, former managing credit
director, GBP140,000 and said that he could not hold a senior job
at a bank again, the report notes.

The two were found guilty of hiding almost 2,000 mortgage loans
that had soured in the months leading up to Northern Rock's near-
collapse, the report says.

According to the report, sources say the FSA is investigating
another senior person at the bank.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 11,
2009, Standard & Poor's Ratings Services raised the rating on
Northern Rock's dated subordinated lower Tier 2 debt to 'BB' from
'CCC'.  The ratings on its perpetual subordinated debt and
preference shares were unaffected.  S&P said the outlook is
stable.


CDV SOFTWARE: Files for Insolvency in Frankfurt Court
-----------------------------------------------------
Jas Purewal at Gamer/Law, citing Gamesindustry.biz, reports that
CDV Software Entertainment AG has filed for insolvency before the
district court in Frankfurt.

The reports CDV's insolvency comes soon after its victory over
Southpeak in a long-running UK legal battle by CDV against
Southpeak and its subsidiaries over alleged breaches of contract
and copyright infringement, which saw Southpeak being ordered to
pay substantial damages to CDV.

CDV Software Entertainment AG is a German console and PC
publisher.


GLOBAL CROSSING (UK): To Buy Back Senior Secured Notes
------------------------------------------------------
Global Crossing (UK) Finance plc, a wholly owned subsidiary of
Global Crossing, has begun an excess cash offer with respect to
its senior secured notes.

In accordance with the indenture governing its notes, GCUK Finance
will offer to purchase for cash up to GBP12.593 million in
aggregate principal amount, including accrued interest -- Excess
Cash -- of its 10.75% U.S. dollar-denominated senior secured notes
due in 2014 and its 11.75% British pound sterling-denominated
senior secured notes due in 2014.  The notes are guaranteed by
Global Crossing (UK) Telecommunications Limited, GCUK Finance's
immediate parent and the principal UK operating subsidiary of
Global Crossing.

The offer is being made pursuant to the terms of the indenture
governing the senior secured notes.  The indenture requires GCUK
Finance to make an offer to purchase the maximum principal amount
of the senior secured notes possible using 50% of GCUK's excess
operating cash flow for the period from December 23, 2004, to
December 31, 2005, and for each 12-month period thereafter.

The excess cash offer will expire at 4:00 p.m. London time May 11,
2010, unless extended.  The terms and conditions of the offer are
described in GCUK Finance's offer document dated April 6, 2010.

Notes that are properly tendered and accepted for purchase in
accordance with the terms and conditions of the offer document
will be purchased at a cash price equal to 100 percent of the
outstanding principal amount of the notes tendered, together with
any accrued and unpaid interest outstanding on the date of the
purchase. If the aggregate principal amount of notes tendered
exceeds the amount that can be purchased using the Excess Cash at
a purchase price of 100% of the principal amount thereof plus
accrued interest, notes will be accepted for purchase on a pro
rata basis among tendering note holders based upon the amounts
tendered.  For purposes of determining the aggregate principal
amount of the notes tendered in order to apply the pro rata
calculation, the aggregate principal amount of the sterling-
denominated notes tendered will be converted to dollars at the
noon buying rate in the City of New York for cable transfers in
pounds sterling as announced by the Federal Reserve Bank of New
York for customs purposes on April 9, 2010.

Tenders may be validly withdrawn until 10:00 a.m. London time on
May 14, 2010 or, if the offer period is extended, at 10:00 a.m.
London time three business days after the expiration date for the
offer.

Copies of the offer document, and other information relating to
the excess cash tender offer, are available from The Bank of New
York Mellon and The Bank of New York Mellon Corporation, as Tender
Agents for the Sterling and Dollar Notes respectively; BNY
Financial Services Plc, as Irish Tender Agent; The Bank of New
York Mellon, as Irish Listing Agent; the custodian for The
Depository Trust Company and the common depository for Euroclear
System and Clearstream Banking, societe anonyme.

                        About GCUK Telecom

Global Crossing UK Telecommunications Ltd., the holding company of
GCUK Finance, provides a full range of managed telecommunications
services in a secure environment ideally suited for IP-based
business applications.  The company provides managed voice, data,
Internet and e-commerce solutions to a strong and established
commercial customer base, including more than 100 UK government
departments, as well as systems integrators, rail sector customers
and major corporate clients.  In addition, Global Crossing UK
provides carrier services to national and international
communications service providers.

                        About Global Crossing

Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
is a global IP and Ethernet solutions provider with the world's
first integrated global IP-based network.  The company offers a
full range of data, voice and collaboration services with an
industry leading customer experience and delivers service to
approximately 40% of the Fortune 500, as well as to 700 carriers,
mobile operators and ISPs.  It delivers converged IP services to
more than 700 cities in more than 70 countries around the world.

At December 31, 2009, the Company had total assets of US$2.488
billion and total liabilities of US$2.848 billion, resulting in a
US$360 million stockholders' deficit.

                           *     *     *

As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'.  The outlook is stable.


GLOBAL CROSSING (UK): Dec. Balance Sheet Upside Down by GBP214MM
----------------------------------------------------------------
Global Crossing Limited said its subsidiary, Global Crossing (UK)
Telecommunications Limited, generated GBP78 million of revenue in
the fourth quarter of 2009.  GCUK also reported cash generated
from operations of GBP29 million before interest payments of GBP15
million.

GCUK recorded a net loss of GBP2 million for the fourth quarter,
compared with a net loss of GBP2 million in the third quarter of
2009 and a net loss of GBP25 million in the fourth quarter of
2008.  The year-over-year decrease in net loss was primarily due
to an unfavorable foreign exchange impact on net U.S. dollar-
denominated debt in the year-ago period.

GCUK generated revenue of GBP309 million in 2009, compared with
GBP323 million for 2008.  The year-over-year decline in revenue
was primarily due to the completion of the Camelot contract, which
was partially offset by increases in other "invest and grow"
revenue.

GCUK recorded net income of GBP5 million for 2009, compared with a
net loss of GBP30 million in 2008.  The year-over-year improvement
was primarily due to an unfavorable foreign exchange impact on net
U.S. dollar-denominated debt in the prior year.

                        Cash and Liquidity

As of December 31, 2009, GCUK had total assets of GBP298.307
million against total liabilities of GBP512.778 million, resulting
in total deficit of GBP214.471 million.

As of December 31, 2009, GCUK had cash and cash equivalents of
GBP37 million compared with GBP26 million at the end of
September 30, 2009, and GBP36 million at the end of December 31,
2008.

During the year, GCUK repurchased GBP7 million of the Senior
Secured Notes, excluding accrued interest.  To support the debt
repurchase and other working capital needs, GCUK borrowed $15
million -- approximately GBP10 million -- from GC Impsat.

"Despite a challenging economic environment, we observed healthy
demand for our robust suite of IP-based services in GCUK," said
John Legere, Global Crossing's chief executive officer.  "We see
an opportunity to grow the business and further diversify our
customer base in 2010, supported by an augmented sales force, our
continued investment in the products and services demanded by the
marketplace, and our recognized ability to provide a
differentiated customer experience."

A full-text copy of GCUK's earnings report is available at no
charge at http://ResearchArchives.com/t/s?5fff

                        About GCUK Telecom

Global Crossing UK Telecommunications Ltd., the holding company of
GCUK Finance, provides a full range of managed telecommunications
services in a secure environment ideally suited for IP-based
business applications.  The company provides managed voice, data,
Internet and e-commerce solutions to a strong and established
commercial customer base, including more than 100 UK government
departments, as well as systems integrators, rail sector customers
and major corporate clients.  In addition, Global Crossing UK
provides carrier services to national and international
communications service providers.

                        About Global Crossing

Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
is a global IP and Ethernet solutions provider with the world's
first integrated global IP-based network.  The company offers a
full range of data, voice and collaboration services with an
industry leading customer experience and delivers service to
approximately 40% of the Fortune 500, as well as to 700 carriers,
mobile operators and ISPs.  It delivers converged IP services to
more than 700 cities in more than 70 countries around the world.

At December 31, 2009, the Company had total assets of US$2.488
billion and total liabilities of US$2.848 billion, resulting in a
US$360 million stockholders' deficit.

                           *     *     *

As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'.  The outlook is stable.


WHITE TOWER: S&P Junks Rating on Class E Notes From 'B-'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
White Tower 2006-3 PLC's class D and E notes.  S&P also affirmed
the ratings on classes A, B, and C.

At closing, White Tower 2006-3 acquired the senior-ranking portion
of a whole loan secured against nine office properties in Greater
London, eight of which are in or close to the City of London.  The
outstanding senior loan (and note) balance is GBP1.12 billion.

On June 9, 2009, the market value of all the properties was
reported as GBP929 million.  The valuation resulted in a breach of
the loan-to-value covenant, and the loan was consequently
transferred to special servicing.  The current reported senior LTV
ratio is 121%.

According to a notice to noteholders, the directors of the
borrowers -- with the approval of CB Richard Ellis Loan Servicing
Ltd. as special servicer -- have instructed agents to market for
sale eight of the nine properties securing the loan.  S&P
understands that the property known as Aviva Tower is not
currently being marketed.

S&P has seen evidence in the market that suggests Central London
offices have appreciated in value by at least 10% over the past
nine months.  Certain reported transactions indicate significantly
higher levels of appreciation.  Market commentary has highlighted
current strong investor demand and limited availability in this
sector of the commercial property market.

For these reasons, S&P believes that a sale in the current
environment could result in gross sale proceeds above the June
2009 valuation.

Furthermore, on each note IPD the most senior class of notes
outstanding is repaid from excess funds available to the issuer
after the payment of issuer expenses and interest due on all
classes of notes.  On the January 2010 note IPD, the excess was
GBP17.5 million, and the issuer used this to repay principal due
under the class A notes.

In S&P's opinion, due to the relatively lengthy completion process
of property sales, the senior notes could continue to be partially
repaid from excess funds on the next two IPD, at least.  This
would equate to amortization of at least GBP30 million, assuming
current three-month LIBOR rates.

All of these factors have reinforced S&P's view of the relative
creditworthiness of the class A, B, and C notes, and S&P has
affirmed its ratings on each of these classes.

However, S&P continues to believe that the ultimate repayment of
the class D notes by legal final is uncertain.  In S&P's opinion,
repayment of this class is particularly susceptible to the timing
and pricing of sales which may be affected by the secondary nature
of a large proportion of the portfolio.  For these reasons, S&P
lowered its rating on the class D notes to 'B-'.

For the same reasons, S&P considers that full repayment of the
class E notes is unlikely, and S&P has lowered its rating on the
class E notes to 'CCC'.

                           Ratings List

                      White Tower 2006-3 PLC
   GBP1.15 Billion Commercial Mortgage-Backed Floating-Rate Notes

                         Ratings Lowered

                                    Ratings
                                    -------
              Class         To                 From
              -----         --                 ----
              D             B-                 B
              E             CCC                B-

                         Ratings Affirmed

                       Class         Rating
                       -----         ------
                       A             A
                       B             BBB
                       C             BB


* UK: Business Failures Down 0.5% in First Quarter 2010
-------------------------------------------------------
Equifax, a business information provider, has released its
Business Failures Report for the first quarter of 2010, revealing
an apparent steely determination by UK businesses to survive -
despite the recession.

As Nic Beishon, Head of Equifax Commercial Information Solutions
explained, while the drop in businesses going bust since the end
of last year is very small -- just half a percentage point -- it
could be an important indicator of how companies have been
managing their operations, from cost cutting to improved
collections, to survive in the current recession.

"Our new analysis appears to suggest that UK businesses have been
working hard to recover from the challenges of the last 18 months
or so -- or at the very least simply survive!" said Mr. Beishon.
"When compared to the last quarter of 2009, overall there was a
very small drop of just 0.5% in businesses going under in Quarter
1 2010.  And while this number is small in itself I believe it is
an encouraging sign of a turn-around in fortunes for the UK
economy as a whole although, clearly there is still much to do to
put real confidence back into commerce."

The Transport & Communications, Services and Wholesale sectors
each saw drops in failures in Quarter 1 2010 compared to the last
quarter of 2009.  However, in quite marked contrast, the Retail
sector experienced an 11.2% increase in businesses going under --
perhaps reflecting those businesses that simply couldn't survive
after difficult Christmas trading or that were impacted by the bad
weather that seemed to persist for much of Quarter One.  The
Construction and Manufacturing sectors also saw increases in
failures in Quarter One compared to the end of last year.

Regionally, the North East, South East, West Midlands and Scotland
saw declines in the number of businesses going bust at the start
of the new decade compared to the end of the Noughties.  However,
for some regions the picture was less positive in the first few
months of 2010.  The South West saw a 14.8% increase in failures
quarter on quarter and there was a 10.9% rise in businesses going
under in the East Midlands.

But when comparing the number of Business Failures in Quarter One
2010 with the same quarter in 2009 there was, perhaps not
surprisingly, quite a significant drop across most sectors and
regions, which Mr. Beishon believes reflects a slowing of the
downturn.

Overall there was a 11.1% drop in businesses going bust and the
Wholesale, Retail and Transport & Communications sectors all
recorded decreases in excess of 20% year on year.

"There is no getting away from the fact that the economy is still
incredibly fragile," concluded Mr. Beishon.  "But these latest
figures do seem to give some hope that UK businesses are fighting
hard to come out of the recession, alive and kicking!"

"Businesses and trade bodies all across the UK should take heart
from these latest figures but obviously need to be mindful that
it's still early days to be believing this is a clear trend,
especially while the economy remains fragile as we await the
outcome of the General Election," concluded Mr. Beishon.

"UK businesses must, therefore, continue to take the right
precautions to protect themselves from some of the risks of the
continuing difficult trading conditions.  They need to continue to
use rigorous credit checks, alongside ongoing monitoring of the
financial status of their customers and suppliers.  By operating
best practice and harnessing the power of the latest risk
management solutions, firms can minimize the threat of bad debt
and secure the future of their business."


===============
X X X X X X X X
===============


* EUROPE: EU Should Consider Harmonized Insolvency Rulebook
-----------------------------------------------------------
Matthew Dalton at Dow Jones Newswires reports that the European
Commission's top policymaker in financial regulation, said
Thursday European Union regulators need broad new powers to deal
with troubled banks, including new taxes to fund future bailouts
and the authority to impose haircuts on unsecured creditors and
oust bank executives.

Peter Chapman at Bloomberg News reports that Mr. Barnier said in a
letter to Spanish Finance Minister Elena Salgado the European
Union should consider whether a "harmonized insolvency rulebook or
administrative liquidation would be needed to support a cross-
border crisis management framework."

Dow Jones relates Mr. Barnier wrote national governments should
have crisis resolution funds that would be pre-funded by banks.
Also, governments should have the power to intervene in troubled
banks before they become insolvent, Dow Jones notes.

"Bailing out or liquidating failed banks cannot be the only
options," Mr. Barnier wrote, according to Dow Jones.


* BOOK REVIEW: Distressed Investment Banking - To the Abyss and
              Back
---------------------------------------------------------------
Author: Henry T. Owsley and Peter S. Kaufman
Publisher: Beard Books
Hardcover: 231 pages
List Price: US$74.95
by Henry Berry

The authors head a consulting firm that they named the The Gordian
Group.  That name was chosen to imply that, like Alexander the
Great cutting through the Gordian knot of myth, their consulting
group can cut through the problems facing distressed companies.
Owsley and Kaufman accomplish this by contacting the various
stakeholders and investigating all relevant factors of the
problems facing a distressed company.  With this broad-ranging
approach, Owsley and Kaufman identify and isolate crucial problems
and provide experienced, practicable guidance for resolving them.
Or as the authors put it, "We seek not merely to unravel thorny
financial 'knots' . . . we seek to slice through them."

In this case, the name of the group is not just an inspired
marketing image.  As the text of the book and examples from the
firm's work with clients evidence, they have developed an approach
that deals with the knottiest of problems facing distressed
companies and do so to the satisfaction of a range of
stakeholders.  The premise of this approach is that "conflicts of
interest are intolerable, and that large investment banks cannot
help but have conflicts of interest when working in the distressed
patch."

As anyone familiar with this field knows, buying and selling a
distressed company commonly leaves big winners and big losers.
Certain groups, often top executives and the investment group
purchasing a distressed company, profit from the sale.  Other
groups, often stockholders and employees, lose out.  Of course,
avoiding or absolving conflicts of interest in the interest of
fairness to stakeholders at all levels and in all quarters is not
only desirable to allow a pending sale of a distressed company to
progress smoothly, but is also required by law.  However, as the
lopsided results of many sales demonstrate, equitable results do
not happen often.  The object of this book is to provide advice
and lessons to ensure that equitable results do happen more often
than not.

Owsley and Kaufman realize that, when it comes to resolving
problems with distressed companies, there is "no silver bullet
solution [to be] found that makes everyone wealthy and happy and
whole."  The situations of distressed companies have, in most
cases, been years in the making, often exacerbated by a corporate
culture that is "more likely to fiddle while a lot of other
people's money burns."  The key to increasing and insuring fairer
outcomes of distressed situations is communication with all
stakeholders.  This communication not only gets the varied
stakeholders involved in the process of dealing with the
distressed situation, but also brings their respective concerns,
ideas, resources, expectations, and hopes into the open so that no
one group such as top executives or an investment group can take
over the process for its exclusive ends.

What is unique about Owsley's and Kaufman's book is that it moves
the crux of considerations and related activities regarding
distressed corporations from the technicalities of financial
issues to the rightful interests of a network of stakeholders.
This does not mean that resolving disagreements will be any
different than they might be otherwise; nor will the amount of
cash involved in a distressed situation be different.  However,
the authors do offer invaluable advice on how to abet the process
by recognizing the necessity of an equitable distribution of the
sacrifices in distressed situations.

Principles of the Gordian Group consulting firm for distressed
companies, Henry Owsley and Peter Kaufman have been active in
varied parts of this business field for many years.  They are
authors of numerous books.


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda-Fernandez, Joy A. Agravante and Peter A. Chapman,
Editors.

Copyright 2010.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *