Eurotunnel 'going concern' risk

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The Independent Online

The move came as Eurotunnel won support from creditors to continue seeking a restructuring of its £6.3bn in debts but appeared no closer to a deal which will satisfy the banks and bondholders.

In a statement issued after the markets had closed yesterday, the Anglo-French company said its auditors had initiated, as they are obliged to under law, "the first stage of the process of issuing a warning regarding Eurotunnel's viability as a going concern".

The new waiver agreement with the creditors will last until the end of March, by which time Eurotunnel hopes to have agreed a capital restructuring. It wants the banks to write-off one-third of the money they are owed with nothing in return from its shareholders. The creditors have insisted that any restructuring of the company must involve the dilution of existing shareholders through some form of debt-for-equity swap.