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EUROTUNNEL CREDITORS MAY FORCE COMPANY INTO LIQUIDATION

Eurotunnel creditors are considering forcing the company into liquidation as the best way of recouping money from the debt-laden operator of the Channel tunnel, The Guardian reported. 

The newspaper quoted a source close to the protracted wrangle as saying that the liquidation and subsequent sale of the company could realise a better return than accepting a restructuring plan proposed by the business last month. 

In the event of liquidation, creditors, which include Deutsche Bank and Oaktree Capital Management, will be first in the queue to receive cash from a sell-off. 

However, creditors are still considering the rescue plan submitted by Eurotunnel a fortnight ago, which would halve the company's £6.2bn debt. Shareholders would be left with 13% of the business. The largest group of creditors, known as the Ad Hoc Creditors' Committee and accounting for about £3.95bn of the debt, has already signalled its opposition, The Guardian added. 

The cross-Channel tunnel will not shut in the event of liquidation because ownership would revert to the French and British governments.