25th Jul 2006 13:56
Eurotunnel PLC/Eurotunnel S.A.25 July 2006 25 July 2006 Immediate release Paris Commercial Court postpones decision Eurotunnel considers that the postponement, until early August, of the decisionby the Paris Commercial Court, concerning the safeguard procedure requested bythe company on 11 July 2006 is opportune. The decision comes as no surprise asthe company has made 17 applications covering six European countries. Thepostponement gives more time to the creditors to negotiate. Eurotunnel points out that, since the agreement of 23 May 2006, therestructuring of its debt has been a problem between creditors, the negotiationsled by the company having given rise to an implicit consensus that: The sustainable level of debt is approximately £2.9 billion; The current shareholders must benefit from accretion measures and retain a significant proportion of the equity There is no reason why the creditors should not rapidly come to a consensualrestructuring agreement within this framework. As Eurotunnel will today make a payment of £78 million in interest, argumentsrelating to default of payment should not be used to justify a rupture innegotiations. It should be noted that the total amount of payments on the debtto be made before 31 December 2006 is £74 million. In the absence of an agreement, the safeguard procedure would allow the company,aided by judicially appointed administrators, to re-engage in negotiations atthe point at which they ceased. The creditors would have nothing to gain fromsuch an outcome. No 988/2006 For media enquiries contact John Keefe on + 44 (0) 1303 284491. Email: [email protected] For investor enquiries contact Xavier Clement on + 33 1 55 27 36 27. Email: [email protected] www.eurotunnel.com Eurotunnel manages the infrastructure of the Channel Tunnel and operatesaccompanied truck shuttle and passenger shuttle (car and coach) services betweenFolkestone, UK and Calais, France. Eurotunnel also earns toll revenue fromtrain operators (Eurostar for rail passengers, and EWS and SNCF for railfreight) which use the Tunnel. Eurotunnel is quoted in London, Paris andBrussels. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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