Court approves Eurotunnel debt plan

The Paris Commercial court today approved a debt reduction plan for Eurotunnel.

The Paris Commercial court today approved a debt reduction plan for Eurotunnel.

The decision paved the way for a fresh start for the company and a share swap for battered equity investors.

Late last year creditors and bondholders of the Anglo-French cross Channel tunnel operator voted in favour of a plan that will cut debt to £2.84 billion sterling ($5.49 billion) from £6.2 billion, following months of talks.

Now, a new Groupe Eurotunnel will make a share swap offer for the French and UK share units of the current Eurotunnel companies; at least 60 per cent of investors have to accept the offer for it to go ahead.

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There are 2,546,164,213 units in total.