Front Page

UK

World

Business

Sci/Tech

Sport

Despatches

World Summary


On Air

Cantonese

Talking Point

Feedback

Text Only

Help

Site Map

Wednesday, November 26, 1997 Published at 13:57 GMT



Business

Light at the end of the tunnel?
image: [ Workers celebrate a milestone - but there's trouble ahead ]
Workers celebrate a milestone - but there's trouble ahead

The operator of the Channel Tunnel, Eurotunnel, has said its bankers have approved financial re-structuring plans.

The move marks a major step forward for the troubled company.

Under the plans, Eurotunnel's 175 banks will swap some of their loans for shares in the group.

The rescue package has already been approved by shareholders and is expected to be completed in the first quarter of 1998.

It will see a major reorganisation of the group's debts of 9 billion, including the write down of 2 billion of debt and cuts in interest rates on the balance.

Eurotunnel Chairman, Patrick Ponsolle, said: "I am delighted that following the agreement of our shareholders last July we now have the unanimous agreement of our bankers."

The company is also pressing for the British and French Governments to extend Eurotunnel's 65-year concession for running the tunnel which expires in 2052.

"If shareholders are to gain the full benefit of the restructuring, the British and French Governments should now make a final decision on the conditions in which the concession will be extended," added Mr Ponsolle.

"Once that has been achieved we shall be able to concentrate totally on further developing Eurotunnel's quality of services and commercial success."








Back to top | BBC News Home | BBC Homepage


[an error occurred while processing this directive] [an error occurred while processing this directive]
Internet Links

Eurotunnel


The BBC is not responsible for the content of these internet sites.