2nd Aug 2006 14:03
Eurotunnel PLC/Eurotunnel S.A.02 August 2006 2 August 2006 Immediate release DRAFT 6 - 11 h Eurotunnel obtains protection from Paris Commercial Court On 13 July, Eurotunnel confirmed, following unanimous decision of its Board, itsintention to place the business under judicial protection, within the frameworkof the "Safeguard procedure" (as defined by French law no 2005-845 of 26July 2005). The decision was taken in light of the absence of consensus onfinancial restructuring and at a time when a "Warning procedure" had beeninitiated by the French auditors, on 12 February 2006. In its judgment of 2 August 2006, the Paris Commercial Court has decided toplace Eurotunnel and the 17 companies concerned under the Safeguard procedure. Eurotunnel is pleased by this decision which confirms: - The legal unicity of the business operating the Channel Tunnel is recognised; - The business is not insolvent; - The operation of the Tunnel and the commercialisation of services will carry on as normal; - This procedure should help to reach a consensual agreement on restructuring. The creditor committees envisaged by the legislation will be constituted in the coming month. Eurotunnel, aided by two judicial administrators, will immediately re-engage innegotiations on the basis of its last proposal of 12 July. There is now aconvergence of views amongst the principal creditors (Ad Hoc Committee andDeutsche Bank) who consider that this proposal constitutes the basis forpursuing negotiations that will lead to a reconciliation of their positions. Jacques Gounon, Eurotunnel Chairman and Chief Executive said, "In a difficultcontext, the Paris Commercial Court has made a positive decision which willprotect the business and the public service which it operates. The Safeguardprocedure decided upon today is the final stage of a consensual negotiation. Iam convinced that we now have the conditions necessary to achieve a financialrestructuring for Eurotunnel within the time allowed". No 990/2006 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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