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French court gives Eurotunnel creditor protection

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French court gives Eurotunnel creditor protection

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A commercial court in Paris has agreed to a request from the heavily indebted cross Channel tunnel operator Eurotunnel for it to be granted legal protection from its creditors for a period of six months. Under the procedure, Eurotunnel can continue operating while it reorganises and addresses its debt problem. The company asked the court to intervene after a minority group of its lenders rejected a restructuring deal for its nine billion euros of debt.

At the same time Eurotunnel has been meeting with a leading group of those to whom it owes money to “take stock” of current negotiations. Eurotunnel shareholders, most of whom are French, stand to lose their investment if there is not an agreement to restructure the debt. The shares have been suspended since May.