Channel Tunnel operator Eurotunnel said today it would take legal action to protect it from creditors after talks aimed at restructuring the company's huge debts ended without agreement.
The company had set a deadline of midnight (11 pm Irish time) on Wednesday to reach a restructuring agreement with its creditors, whom it owes some £6.2 billion (€8.9 billion). However, the talks broke up without a deal early today.
"Eurotunnel is now forced to pursue legal proceedings to place itself under the protection of the Commercial Court of Paris," Eurotunnel said in a statement.
A Eurotunnel spokeswoman said the company's board would meet to discuss the outcome of the talks. Chief Executive Jacques Gounon will hold a news conference in Paris this afternoon.
The company said it had cancelled its July 27th shareholders' meeting after the failure to reach a debt deal.
The Commercial Court confirmed there was due to be a closed-door hearing on Eurotunnel on Thursday morning, but declined to comment on when it may issue a decision in the case.
Eurotunnel blamed the talks breakdown on creditors grouped around Deutsche Bank, which has backed an alternative financial restructuring deal to one signed in May between Eurotunnel and a majority of the firm's debt holders.
Eurotunnel took on massive debts to dig the rail tunnel - an engineering masterpiece that has never paid its way. Delays in the start of train services in 1994 and lower traffic figures than anticipated exacerbated the problems.