Channel tunnel operator Eurotunnel is asking creditors to help save it from bankruptcy.
The group has debts of more than £6 billion and media reports suggest directors are keen on offering a debt-for-equity swap for as much as £2bn of the debt, UK national newspapers reported this week.
Another element of the package could see the owner of the tunnel’s Eurostar passenger-train service - SNCF - forge an alliance with the beleaguered tunnel operator.
Eurotunnel must ask creditors to waive a borrowings clause in order for it begin formal negotiations with banks.
Debt restructuring must be complete by the end of next year. From 2007, the company will receive less money from freight operators as well as Eurostar creating a huge shortfall. In the same year it is due to start repaying capital as well as interest on its debts.
The Le Tunnel vehicle and freight service transports thousands of tonnes of fresh produce into the UK each year.
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