Eurotunnel to file for Chapter 11

Gareth · 13-07-2006, 15:48

Link: http://www.bloomberg.com/apps/news?p...c9ZnI&refer=uk

Quote:

Originally Posted by Bloomberg

Eurotunnel SA, operator of the rail link between the U.K. and France, will pursue bankruptcy protection after talks to restructure 6.2 billion pounds ($11.4 billon) of debt collapsed.

Hope this affords them some time to sort out their problems. Their chairman is quoted elsewhere as saying "If we cannot present a plan to shareholders before end-September at the latest, then the end of the story is easy to write,"

It would be a shame to see Eurotunnel have to go into liquidation if they fail to resolve things. I quite like using the chunnel.

**Rob** · 13-07-2006, 15:59

The reality is that while they owe that level of money, however they "restructure" - they've tried and done so so many times before - they will always be burdened and vulnerable.

Bankruptcy would in fact be the better option. A new package could tehn be created at totally affordable levels, by new management/ investors, that could make a go of it.

It's a bit like the cable cos. Bottom line it cost so much to build that it could never make a profit when haveing to keep prices pegged against those who built their infrastructure when labout costs didn't matter.