Eurotunnel granted waiver extension to July 12 for negotiations

By Caroline Salls

Pittsburgh, April 26 - Eurotunnel SA obtained an extension of a waiver from senior creditors until July 12 for a new period of negotiations for its restructuring plan, according to a company news release.

A total of 84.09% of Eurotunnel's senior creditors and 67.52% of its co-financiers voted in favor of the extension.

As previously reported, The Paris-based operator of the Channel Tunnel said a review is planned for mid-May.

On Jan. 31, Eurotunnel and the ad hoc committee of creditors representing more than 50% of debtholders signed a memorandum of understanding.

During a second waiver period from Feb. 16 to March 31, the company outlined the framework of the restructuring and junior and subordinated creditors formed a single committee.

Eurotunnel previously said that it will not be able to meet its contractual obligations in the first half of 2007. It added that it has credit agreements to provide a cash facility of up to £50 million and a standstill agreement in case of a default to permit the group to operate normally during negotiations. The company said that the standstill could be interrupted by a qualified majority of creditors.

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