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FRENCH COURT GIVES EUROTUNNEL 6 MONTHS...

A French court has today (2 August) finally granted Eurotunnel's bid for bankruptcy protection.

The cross-Channel tunnel operator filed a petition last month after last-ditch talks on the restructuring of its £6.3billion debt had failed to produce a deal.

The decision by the Paris Commercial Court gives the Anglo-French company a six-month stay from creditors, allowing it to return to the negotiating table with bondholders.

Eurotunnel Chairman and CEO Jacques Gounon expressed "great satisfaction" at the court decision, saying he was "convinced" the company would reach an agreement with shareholders during the six-month stay.

Eurotunnel is expected to default on its debt repayments early next year if no agreement is reached.