Press Release - Project Deutsche Bank

27/06/2006 - 10:00

Eurotunnel was informed on Monday 26 June, that the Ad Hoc Committee, which represents the Group’s principle creditors, had, at the end of last week, indicated directly to the holders of the subordinated debt that the financial restructuring project developed by Deutsche Bank was not acceptable to the creditors that they represent.

This position means that the project has no chance of success even though it is still presented by its promoters as an alternative.

This project, based on an enterprise value far superior to that emanating from the combined analyses of Eurotunnel and the Ad Hoc Committee, would enable the most subordinated creditors to recover a substantially greater amount than the market value of their debt and probably, in the case of most of these creditors, the acquisition cost of their debt.

These subordinated creditors remaining free to trade in the bonds constituting this subordinated debt, Eurotunnel has requested that the market authorities in the UK and France (AMF and UKLA) take steps to ensure that the subordinated creditors’ project has not been proposed for the sole purpose of misleading other market participants, and in particular shareholders, who might be tempted to trade in these bonds or other equity securities of Eurotunnel in the hope of realising the levels of return on investment put forward by these creditors.