Eurotunnel prepares hire to keep creditors onside

Eurotunnel is in talks with the City's top financial comms agencies as it looks to bolster support for the restructuring of its £6bn debt.

A source said it would hire an agency within the next two months and that contact with financial comms firms was 'at a very initial stage'.

The move comes a month after Eurotunnel said it would 'not provide any detail on its proposals' to the committees of its creditors.

The source said Eurotunnel had confined talks to the City's top agencies, including Tulchan Communications, The Maitland Consultancy, Finsbury and Citigate Dewe Rogerson.

Previous retained agency Brunswick is not involved because of its work for the first committee of Eurotunnel's creditors, sometimes referred to as the Ad Hoc Committee. Brunswick was axed last year following the French shareholder revolt that installed the current executive board.

Ad Hoc represents Eurotunnel's senior creditors who hold around half of the firm's debt. Convincing its members (MBIA, the European Investment Bank, Franklin Mutual Advisers and Oak Tree Capital Management) to back a restructuring plan is an important part of the discussed brief.

Eurotunnel is not expected to appoint an agency before next month, when the results of a voluntary redundancy plan are announced.

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