Eurotunnel rules out further issues
Thursday 01 June 1995
Sir Alastair Morton, co-chairman of the Anglo-French tunnel operator Eurotunnel, assured shareholders yesterday that more rights issues were out of the question to solve the company's huge debt problem.
"You will note that we have not mentioned more equity from our patient shareholders," said Morton, "and we have no plans for a share issue." Morton announced that Eurotunnel will pursue some contractors and suppliers for compensation.
He also ruled out further borrowing to service the bank debt of about pounds 8bn. Mr Morton said he would continue to seek to cut the debt service costs via a reduction in the interest rate on the existing debt, but warned that the performance of Eurotunnel over the summer months would be crucial to the mood of the creditor banks. Private talks with the banks are scheduled for September.
Graham Corbett, chief financial officer, said the proportion of sterling debt at fixed rate increased from 46 per cent to 50 per cent, while the portion of French franc fixed-rate debt increased from 24 per cent to 33 per cent.
Since mid-May, Eurotunnel has captured 35 per cent of the freight service market on the Dover-Calais route. In April, the freight service carried 22,648 lorries, bringing the total to date to 85,556. In April Eurotunnel carried 96,735 cars, bringing the total to 270,677. Eurotunnel expects to carry its half-millionth car customer during June.
The market reacted to the news by marking shares down 6p to 182p.
- 1 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 2 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...