Eurotunnel trading resumes, expects to launch exchange tender offer April 10

By Caroline Salls

Pittsburgh, March 28 - Eurotunnel SA's trading resumed on Tuesday and the company expects to launch its exchange tender offer on April 10, according to a report to shareholders from chairman and chief executive Jacques Gounon.

After an 11-month trading suspension, Gounon reported that it is possible that the share price will take some time to settle, but Gounon said given the recovery in the operations seen over recent months, shareholders should be confident about the future.

Gounon said the next and final step in the reorganization will be the offer for one Eurotunnel SA/plc unit of one share and one warrant to subscribe for a share in GET SA.

The minimum acceptance level for the offer has been set at 60%, and shareholders will have until May 15 to tender their units.

Gounon told shareholders that if the exchange offer fails, Eurotunnel will go into liquidation with negative equity of £1.3 billion.

In addition, the new credit agreements that are part of the company's Paris Commercial Court-approved Safeguard plan have been signed, the registration document that describes the details of the reorganization has been registered by the French market authority and the exchange offer was filed on Friday by presenting banks Lazard Freres, Natixis and Lehman Brothers.

Gounon also said the company will offer a facility for U.K. shareholders to hold their GET shares in the form of Crest Depository Interests through existing Eurotunnel U.K. registrar Computershare Investor Services plc.

Eurotunnel is the Paris-based operator of the Channel Tunnel.

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