Eurotunnel in debt talks

Debt-laden Eurotunnel was fighting to secure its future tonight in last-ditch talks with its creditors.

The Channel Tunnel operator has until midnight to reach a deal over its £6.1bn (€8.9bn) debt mountain.

Eurotunnel has called for creditors to write off two-thirds of the debt without the offer of shares in return.

But creditors could still derail the plans by calling in Eurotunnel’s debt and taking control of the company if an agreement cannot be reached.

Tonight Eurotunnel refused to comment on the basis of the discussions in New York, and in particular whether there was a possibility of a compromise deal based on creditors cancelling part of the debt in exchange for a stake in the company.

Last year the Anglo-French company warned it could face bankruptcy by mid-2007, but it then signed a six-month waiver which allowed talks with creditors to take place.

A Eurotunnel spokeswoman said: “As far as we are concerned the waiver runs out at midnight and there is nothing more to say on the subject.

“Eurotunnel and the creditors are behind closed doors and discussions are ongoing.

“It is unlikely there will be any statement tonight.”

Eurotunnel faces a change in its finances next year when it starts to repay some of its debt.

Earlier this month Eurotunnel unveiled its first increase in shuttle revenues since 2002 – up 4% to £295m (€432m) – after a rise in the number of trucks carried.

However, it reported a 16% decline in the amount of freight carried through the tunnel by other operators, such as cars and trains.