Eurotunnel, the debt burdened company that operates the cross-channel rail link between Britain continental Europe, has avoided bankruptcy. The French financial market regulator confirmed that a debt-for-equity public share swap offer has been a success. Eurotunnel needed to get acceptance of the restructuring plan by more than 50% of its shareholders. In the end 87% of investors supported the idea.
With this move the nine billion euros of debt will be halved, though many of the 660,000 shareholders will see their investment even further diluted. The company’s Chairman and Chief Executive Officer Jacques Gounon said “Eurotunnel is saved, it enables us to have a fresh start” with the rescue plan now able to proceed.