Eurotunnel chairman Jacques Gounon says the company faces possible financial collapse if it cannot come to an agreement with creditors.

He said that unless a deal is reached by October to write off part of Eurotunnel’s £6.4 billion debt the firm's future will be in serious danger.

Eurotunnel has a concession to carry cars and lorries through the Channel tunnel for the next 80 years, but needs to secure a rescue package to avoid going into bankruptcy.

Gounon said Eurotunnel has until October to secure an outline deal, at which point creditors could step in and take control of the business.

"If at the end of October, there is no solution, I will have to approach the board for a decision as to whether we are a going concern," he told the Sunday Times newspaper.

"Even if they (creditors) take over, they will still have the same challenge that we have - that is designing a scheme that will solve the company's problems."

further disarray.

Eurotunnel is expected to name a new interim chief executive on Monday.

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