The future of Eurotunnel was thrown into confusion after shareholders in the channel tunnel operator replaced the entire board with their own nominees.
The incoming chairman vowed to renegotiate the company’s £6.4m debt but it was unclear whether rebel shareholders would not press for the British and French governments to bail out the troubled group, which is facing a cash crunch in 2006.
France’s budget minister has already ruled out such a move. The most likely next step is that management control of the tunnel will switch to the 200 creditor banks.
Shareholders are expected to realise little value from their stake of the company’s equity.
The future is also clear at an operational level. Eurotunnel’s existing management wanted to lower track access charges to encourage more traffic.
The rebels said they wanted to raise prices to make more margin even though any change in track access charges would breach contracts currently in force.
References: Financial Times 08/04/04 page 1, page 18 (Editorial), page 23 The Daily Telegraph 08/04/04 page 31 The Times (Broadsheet) 08/04/04 page 23, page 28 The Guardian 08/04/04 page 18, page 25 (Editorial) T
