Eurotunnel rejects Deutsche Bank's debt plan

27th June 2006, Comments 0 comments

PARIS, June 26, 2006 (AFP) - Eurotunnel, which operates the Channel tunnel linking Britain to France, said Monday it had rejected a debt restructuring plan proposed by Deutsche Bank aimed at saving the group from bankruptcy.

PARIS, June 26, 2006 (AFP) - Eurotunnel, which operates the Channel tunnel linking Britain to France, said Monday it had rejected a debt restructuring plan proposed by Deutsche Bank aimed at saving the group from bankruptcy.

A spokeswoman for Eurotunnel told AFP that the proposal by Deutsche Bank would leave the group with 1.5 billion EUR more debt than under an alternative proposal it has already backed.

"The Deutsche Bank plan has been examined by the board but there is no chance of it being implemented because it does not have the support of senior creditors or of the company,” the spokeswoman said.

The company has already reached an outline agreement with leading creditors to reduce its debt by 54 percent to 2.9 billion pounds (4.23 billion EUR, 5.43 billion dollars).

Shareholders are being called on to back this plan at the company's general meeting on July 12 to prevent the company going bankrupt.

The plan by Deutsche Bank had sought to retrieve additional value for the owners of bonds in Eurotunnel, who account for 30 percent of the debt but who are not priority beneficiaries under the terms of the other debt proposal.

Copyright AFP

Subject: French News

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