of taking control of the company by the creditors

Jacques Gounon, President and CEO of Eurotunnel, yesterday detailed restructuring plan of the EUR 9 billion of debt of the operator of the channel tunnel, which will provide the shareholders gathered in the General Assembly on 12 July. Approved may 24 by the ad hoc 50.4 per cent of the debt creditors Committee, the plan is under, since yesterday, "engaging" offer "full" funding signed by Goldman Sachs, Barclays and Macquarie European Infrastructure Fund. If shareholders approve the qualified project "last chance", it will be implemented in the fall. Otherwise, Jacques Gounon will ask "as early as July 13" justice to initiate the review procedure. The lines of force of the plan are based on massive debts leaving the debt is reduced by 54 to 4.24 billion euros on the creation of hybrid securities rated for a nominal amount of EUR 1.5 billion convertible as of 2009, and the absence of dilution for shareholders during the first three years. After five years, they will be diluted between zero and 87 scenarios, and around 50 on the basis of "reasonable" by the CEO hypothesis. Here are the main chapters.

The new debt. Chipped to the actual capabilities of reimbursement for Eurotunnel by Barclays, Goldman Sachs and Macquarie, and refinançable at any time, it is composed of three slices, including 512 million euros maximum debt mezzanine to allow the company to make an immediate exit to certain creditors and first offer to bondholders.

Hybrid securities. An amount nominal value of nearly EUR 1.5 billion and taking the relay of a part of the junior debt, subordinated and convertible securities shares from 2009 will be rated on the market. Eurotunnel reserves the possibility to convert a portion increments after three years, but also to redeem another party "by all means": increase in capital, debt, or additional debt of EUR 332 million. "To buy 40 is quite feasible in five years," said the CEO.

A new holding company. Listed in London and Paris, the holding company of French law Hold Co Fr, to create, will be the new shareholder in Eurotunnel. The public exchange offer (CFS) launched in September and closed on 28 October on the capital will be on the basis of action Hold Co and good free stock against 1 unit Eurotunnel. Actions can be grouped in a ratio of 1 in 40 to exit under the category "penny stock". The minimum number of shares at the NEBS intake will be 60. If 50 to 60 are made, "the parties will appreciate the situation", and if the result is less than 50 "it will be a failure," warned Jacques Gounon.

Corporate governance. Represented in the entity "X Co", the origin of hybrid that is Goldman Sachs, Macquarie securities holders, springboard Mutual and Oak Tree, will have a preferential stock in the holding company Hold Co Fr, and 4 administrators against 7 for Eurotunnel.

The bond pole. In addition to obtaining or non-approval of the shareholders, bondholders Eurotunnel behavior remains the great unknown of the proposed plan. Wanting to continue to exchange the debt market, they asked not to be related to an agreement on the restructuring. Once they have signed it, "they will be welcome in the negotiation," said the CEO. The market he had proposed to them "and that did not raise their enthusiasm" is the following: delivery of immediate cheque of 105 million, 46 higher than what they would receive when overridden, i.e. of taking control of the company by the creditors. If they continue to reject an agreement, he is promised is the bankruptcy of Eurotunnel, in which case they would probably lose all of their implementation, or the use of the British justice to impose a settlement. Bondholders reacted strongly yesterday, stating that they would not accept to be taken hostage by the threat of deposition of Corporation's balance sheet.