Eurotunnel has presented its relaunch project , more like a survival plan as it involves job and service cuts to slash its monsterous debt pile. It wants to boost operating margins by 100 million euros by 2007, by which time it will be under huge interest payment pressure.
Union representative Michel Yard says; “It’s clear that everyone is going to suffer greatly , becuase people haven’t been doing their jobs properly for years. Redundancies are for January, or sometime next year in any case” Company boss Jacques Maillot has baptised the rescue plan DARE, but no figures have yet been released for the effects on Eurotunnel’s 3000-strong workforce. Maillot and the new management have been in office since April, six months in which the share value has halved. Hardly a vote of confidence from the market. Eurotunnel’s breathing space is rapidly running out. Cash flow cannot cope with debt repayments, so it has been paying with IOU’s , but by the end of next year these will have to be in hard to come by cash.