Banks derail Eurotunnel’s freight plan
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Eurotunnel’s banks have declined to back the company's plan to launch a European rail freight service. In February, Eurotunnel announced plans to build a ?7 million terminal at Folkestone, UK and haul freight trains to Basle in Switzerland. (5/26/2004)
Already owed ?6.4 billion, the company's banks reportedly refused to support the idea, only a month after French rebel directors ousted Eurotunnel’s board and took control of the company.
The refusal is seen as a signal that bankers Citigroup, MBIA and Credit Agricole, will take a hard line in future debt restructuring negotiations.
Last year, the beleaguered Eurotunnel posted a net loss of almost €1.9 billion (£1.25 billion). Investors have watched their investment drop 90% of its value since the shares were listed in 1987, as construction costs spiralled, revenues failed to meet forecasts, and debt reached €9 billion.
Source : www.eyefortransport.com
www.eyefortransport.com is a FREE information portal for the freight transportation industry loaded with case studies, white papers, Q&A with industry leaders, features and editorials and latest freight news updated daily. We also produce global events focusing on how new technologies change the freight industry. For more information go here: www.eyefortransport.com/upcomingevents.shtml
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Eurotunnel’s banks have declined to back the company's plan to launch a European rail freight service. In February, Eurotunnel announced plans to build a ?7 million terminal at Folkestone, UK and haul freight trains to Basle in Switzerland. (5/26/2004)
Already owed ?6.4 billion, the company's banks reportedly refused to support the idea, only a month after French rebel directors ousted Eurotunnel’s board and took control of the company.
The refusal is seen as a signal that bankers Citigroup, MBIA and Credit Agricole, will take a hard line in future debt restructuring negotiations.
Last year, the beleaguered Eurotunnel posted a net loss of almost €1.9 billion (£1.25 billion). Investors have watched their investment drop 90% of its value since the shares were listed in 1987, as construction costs spiralled, revenues failed to meet forecasts, and debt reached €9 billion.
Source : www.eyefortransport.com
www.eyefortransport.com is a FREE information portal for the freight transportation industry loaded with case studies, white papers, Q&A with industry leaders, features and editorials and latest freight news updated daily. We also produce global events focusing on how new technologies change the freight industry. For more information go here: www.eyefortransport.com/upcomingevents.shtml