News

LAST DITCH BID TO SAVE EUROTUNNEL

A last ditch restructuring plan for cash strapped Channel Tunnel operator Eurotunnel  was unveiled yesterday (26 October) in an attempt to save the company from collapse.

Existing shareholders, under the proposal, would have a minimum 13% stake in a new company that would make an offer for Eurotunnel's shares early next year. 

The new company, Groupe Eurotunnel, would be bolstered by a long-term loan of £2.84bn from a consortium of banks including Goldman Sachs, Deutsche Bank and Citigroup.

The proposal follows the company being granted bankruptcy protection in a French court three months ago.

Eurotunnel ran up massive debts during construction of the cross-channel rail tunnel, which opened in 1994.