Eurotunnel court protection decision postponed until August

By Jennifer Lanning Drey

Eugene, Ore., July 25 - Eurotunnel SA said the Paris Commercial Court has postponed a decision until early August concerning the protection requested by the company, according to a company news release.

In the absence of an agreement among creditors, the safeguard procedures would allow the company, aided by judicially appointed administrators, to re-engage in negotiations at the point at which they ceased, the company said in a news release.

Eurotunnel said the restructuring of debt has been a problem between creditors since May.

Negotiations led by the company have given rise to the consensus that the current shareholders must benefit from accretion measures and retain a significant proportion of the equity. The sustainable level of debt is approximately £2.9 billion, according to the release.

Eurotunnel said there is no reason that the creditors should not now come to a consensual restructuring agreement.

The company also said arguments relating to the default of payment should not be used to justify a rupture in negotiations.

Eurotunnel will make a £78 million interest payment today, according to the release.

The company said the court's postponement of making a decision gives creditors more time to negotiate.

It also noted it has made 17 applications for court protection in six countries.

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

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