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Crisis looming at Eurotunnel
Eurotunnel will go bust next January unless a deal is reached with creditors, the company has warned.
A spokesman quoted in The Observer explained that a year from now it will have to start paying back a significant part of its debt.
“At that point we will be insolvent,” the spokesman said.
The stark warning came as Eurotunnel continues to explore a debt restructuring deal with creditors who are owed £6.4 billion.
Chairman Jacques Gounon wants banks to forgive debt rather than a agree to a restructuring that will lead to a dilution of their shareholdings. The Observer reported however that creditors are resisting the move and have said debts can only be reduced if shareholders give up some of their shares in return for a debt write-off of £4 billion.
The spokesman said talks will not continue unless substantial progress is made.
Eurotunnel last year made its first increase in revenues from its car and truck shuttle service since 2002 although projected traffic figures have proved well wide of the mark.
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