French hold up Eurotunnel accounts

The French auditors of Eurotunnel, KPMG and Mazars & Guerard, are still
refusing to sign off its accounts despite the embattled company’s efforts to
secure a rescue refinancing.

A Eurotunnel spokesman said the group’s auditors would not sign off the
accounts until the debt restructuring was complete.

The Channel Tunnel operator has been suspended from trading on the London
Stock Exchange since May after missing the deadline to file its accounts. The
company said the board would consider the accounts only after talking to its
financial backers.

This week Eurotunnel chief executive Jacques Gounon said the company had
reached a deal with Barclays, Goldman Sachs and the European infrastructure fund
of Macquarie to write off £3.3bn of debt, although a number of subordinated debt
holders had still to decide whether or not to back the refinancing.

‘Until the subordinated debt holders agree to support the plan, the French
auditors will not approve the accounts,’ the Eurotunnel spokesman said.

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