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Eurotunnel - Where did it all go wrong?


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In the run up to the tenth anniversary Eurotunnel have announced their latest finanacial results; A £1.3bn loss. Their total debts are now over the £6bn mark. How can they ever expect to trade out of these debts when they are nowhere near to meeting their projected targets for rail passengers and freight. The company are now begging the Government to help reduce these debts. Hasn't this tunnel been refinanced once already? What should be decided about the future of the tunnel? Was it a big mistake?

 

 

http://www.timesonline.co.uk/article/0,,5-995812,00.html

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Originally posted by Sidla

Well in that case the government should help by clearing at least part of their debts. I thought the tunnel was government funded anyway.

 

No, it was one of Thatcher's 'private is best' brainchilds. Admittedly, it has cost the tax payer a lot over the years but it was originally intended to have been built by private industry with no risk to us. Ho ho.

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The company receives a guaranteed minimum user fees but these are due to be withdrawn in 2006 and also they will be required to make capital repayments on the £6bn debt in 2006 which they are clearly not in a position to do so. It's ok to say let the Government bail them out but it's cost taxpayers on both sides enough money already.

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