Court approves Eurotunnel restructuring
Paris court backs debt plan for embattled tunnel operator
Eurotunnel, the embattled channel
tunnel operator, has secured its future after the
Paris Commercial
court backed plans which would see the company’s debt cut to £2.84bn from
£6.2bn.
Eurotunnel already has the backing of its creditors and the court’s decision
will pave the way for the Anglo-French firm to leave bankruptcy protection.
The company is currently operating under a
‘safeguard
procedure’, the French version of bankruptcy protection.
Under the terms of the restructuring plan, the newly formed Groupe Eurotunnel
will make a share-swap offer for the French and UK share units of the current
Eurotunnel companies.
Eurotunnel has three years in which to implement the restructuring and needs
the support of 60% of its investors for the share swap to proceed.
Further reading:
Last ditch plan unveiled to save Eurotunnel operator
Eurotunnel gets reprieve from creditors
Eurotunnel two months away from bankruptcy