dnEurotunnel moved ahead with its slated restructuring plan. Last week the company's bank creditors voted to write off a significant amount of debt under the French procedure de sauvegarde (safeguard procedure). The restructuring reduces the company's debt to GBP2.8 billion ($5.5 billion) from GBP6.2 billion.
Under the plan, the most senior GBP2.53 billion of the company's GBP6.18 billion debt will be transferred at its present value to a new company. The remaining, lower-ranked GBP3.66 billion will be offered as either GBP240 million cash or stakes in a GBP1.17 billion hybrid bond that will transform into 87% of new Eurotunnel's shares. Consent from bondholders and shareholders is now required, and the bondholders' vote will take place in the next week or so. There will be no separate shareholder vote.