"Insiders yesterday said that the banks, which are owed £6,4 bn by
Eurotunnel, were alarmed at newly elected directors' remarks that they
wanted a "global renegotiation of debt".
One source said mere public statements of this type were enough to
constitute an opening of negotiations - which could put the company in
breach of present agreements.
If Eurotunnel is judged to be in default, lenders could demand
"substitution" - entitling them to all the company's cashflow and
effectively giving them control. Among the leading creditors are HSBC,
Crédit Lyonnais, the European Investment Bank and the US Group MBIA;
Eurotunnel's new deputy chief executive,
Hervé Huas, attempted to soothe
nerves yesterday by suggesting that key elements could be retained from the
former management's Project Galaxie restructuring plan.
He said the plan, which involves seeking non financial aid from
governments to renegotiate debt, contained "many good ideas" worth pursuing.
His remarks drew a sceptical response at an information meeting in London
attended by more than 200 British private investors.
One pointed out that Mr Huas had spent months criticising Project
Galaxie, remarking "Volte face is, of course, a French expression".
