News

LIGHT AT THE END OF EUROTUNNEL

Eurotunnel was saved from bankruptcy after it  was offered a glimmer of hope on Monday (27 November), when most of its creditors agreed on the outline of a restructuring plan to reduce the company's £6billion debt. Left out in the cold, however, were its most junior bondholders, who may cause trouble down the road.

Bondholders who have been propping up about 72% of the company's arrears voted in favour of the board's restructuring plan which could cut the Channel Tunnel operator's debt in half and help it avoid insolvency. The plan was approved by 28 creditors out of 53. 

The proposal, set out by Eurotunnel Chairman Jacques Gounon, would create a new company, Groupe Eurotunnel, and a long-term loan from a group of banks including Goldman Sachs, Deutsche Bank  and Citigroup.

The company's creditors will now look at two more plans built on Gounon's proposal, submitted by Citigroup and Deustche Bank, and will vote on the final restructuring in mid-December.

Eurotunnel has been under bankruptcy protection by a French court since August, though the Channel Tunnel rail service between Britain and France continues to run.