Goldman Sachs, Macquarie in Eurotunnel bailout |
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Mon, 15 May 2006 14:30
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PARIS - Channel Tunnel operator Eurotunnel has announced that it is in advanced talks with Goldman Sachs and Australian Bank Macquarie for undertaking a massive restructuring of the company. Eurotunnel, which is reeling under a debt of close to £6.3 billion, had trading in its shares suspended on Euronext this morning after the announcement.
"Eurotunnel confirms that it is in advanced negotiations towards a global financial restructuring for the group with the Ad Hoc committee of creditors, and with the Goldman Sachs and Macquarie groups," a statement to the stock market said. Although no deal is expected today, it is thought that a firm announcement would be made within the next two or three days.
The operator stressed that it would be unwise to heed to any speculation at the moment, "Any rumours, commentary and interpretation of these discussions should be treated with the utmost caution," it added.
Earlier, Eurotunnel had said that it was hoping to conclude a deal with its creditors by the middle of the month. That Goldman Sachs and Macquarie were involved became clear after the group confirmed that it was very close to a deal. However it stressed that suspension of trading in shares should not be "wrongly interpreted as an imminent announcement of major developments in its financial restructuring." The move to suspend pan-European trading followed a suspension on London listing after Eurotunnel failed to file its initial results for the last year. Trading was suspended at 25 pence, thus valuing the company at £636.5 million.
This morning there was heavy trading on Eurotunnel shares and the stock rose by 7.32 per cent to €0.44. This values the company at more than €1.1 billion (£751 million). "Eurotunnel will keep the market informed of progress in these discussions and, in the event, of the conclusion of an agreement," the operator's statement concluded.
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Eurotunnel auditors warn investors: company is no longer a going concern 