Eurotunnel files for Paris court protection after subordinated creditors reject final restructuring proposal

By Caroline Salls

Pittsburgh, July 13 - Eurotunnel SA's joint board placed the group under protection of the Paris commercial court following its subordinated creditors' rejection of Eurotunnel's final restructuring proposal, according to a news release.

In addition, the board decided unanimously to cancel the general meetings of Eurotunnel plc and Eurotunnel SA shareholders scheduled for July 27.

Eurotunnel said it presented an ultimate proposal on Wednesday to reach a compromise on its preliminary restructuring agreement in light of the subordinated creditors' demands.

Although the vast majority of these demands were satisfied, Eurotunnel said the subordinated creditors, led by Deutsche Bank, rejected this final attempt to reach a negotiated agreement between all of Eurotunnel's creditors.

"I fail to understand how an institution such as Deutsche Bank has maintained its unreasonable demands without taking into account the consequences on the 2,300 employees and 800,000 shareholders of Eurotunnel," Eurotunnel board member Jacques Gounon said in the release.

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

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