Eurotunnel

The Groupe Eurotunnel is a private company free - British, which is concession naire for eighty ten nine years of the infrastructure of the Channel tunnel. It is one of the leaders European of the Ferroutage. Its history is marked by a succession of financial reorganizations. It is with dimensions in purse with Paris, London and Brussels.

Two trades

The Groupe Eurotunnel exerts two trades:

Administrative of railway infrastructure
Railway company

Railway manager of infrastructure

He perceives tolls on behalf of others railway companies which use the tunnel. In 2006, the customers are Eurostar for the passengers and the the SNCF and EWS for the goods.

Railway company

He exerts this trade in two distinct activities:

transport transmanche
transport in Europe

In a historical way, with its tunnel, between the terminals of Calais/Coquelles (France) and Folkestone (the United Kingdom), it exploits two types of shuttles of Piggyback traffic, the ones transporting of the trucks and the others transporting of the cars and the coaches. The disproportionate Gabarit of its oars prohibits to them in fact to leave the influences of Eurotunnel. In this activity, since 2001, it transports per annum on average ten eight million tons of goods and fifteen million passagers.
Since 2005, thanks to its license of railway company, it exploits services of transport of freight on RF.

History

1986: Construction

The Eurotunnel Group is made up August 15th, 1986.
The same day, it signs the contract of construction of the tunnel with its supplier, the company TransManche Link (TML). It begins its work later ten eight months, in December 1987, and finishes them later six years ½, in May 1994.

1994: Beginnings of the commercial exploitation

The Eurotunnel Group gradually opens the tunnel at the commercial exploitation with the second half-year of the year 1994:

June 1st, 1994: Passage of the first goods train
July 25th, 1994: Commercial opening of the service for the trucks of Eurotunnel
November 14th, 1994: Passage of first Eurostar
December 22nd, 1994: Commercial opening of the service for the cars

1995: Current exploitation of the historical activity

Since the end of the year 1994, the Eurotunnel Group continues the current exploitation of the railway activity of the tunnel at a rate/rhythm régulier.
The service grows rich gradually, inter alia with the commercial opening of the service for the coaches then the motor homes and the caravans in 1995 and with the opening of the service of transport of the pets, the “Fart Travel Design”, in of 2000.
Only a fire, caused by a truck embarked on a shuttle, disturbs this regularity in 1996.

2004: Diversification

The February 17th 2004, the Eurotunnel Group obtains a license of railway company, which is allotted by the French authorities to its subsidiary company Europorte 2 and valid in all the European Union. For this reason, it exploits services of transport of freight on RF as from 2005. It is the first company to obtain, in France, a European license of operator ferroviaire.
The Eurotunnel Group leads from now on its two activities of railway conveyer.

Financial history

A concession

A study undertaken in 1984 by a group of British and French banks had ruled on the economic viability of the project, in spite of its gigantism.

The Channel tunnel, large international Transport infrastructure, was financed by privately held companies, without any intervention of the States British and French, n the other hand of a valid patent of mining claims until in 2052. The British government of the time, directed by Margaret Thatcher dictated her position: “ Not has public penny ” (in French, “ not least the Penny public ”) for the tunnel, position actée in the treaty of Canterbury signed the February 12th 1986 by François Mitterrand and Margaret Thatcher.

The Groupe Eurotunnel is indicated dealer. It is made up at the origin for one duration of fifty-five years (1987 - 2042). The small carriers, approximately 700.000, of which 80% are French, account for 65% of the authorized capital.

Seven years of work without trading incomes

The cost of the project was of 16 billion euros. The shareholders provide of them 4,5 and the debt, 11,5.
During all the time of construction, the Eurotunnel Group devotes its resources to this construction without perceiving incomes in return.

A fast degradation of the situation

Very quickly, the financial position of the Eurotunnel Group is degraded. The company is found at the edge of the bankruptcy as of 1997, that is to say three years only after the startup of the tunnel. The governments then agree to prolong the duration of the concession of thirty-four years, carrying its term in 2086, and changing to 59% the tax S on the benefit. A restructuring plan of the capital is developed with the banks.

Two primary reasons explain this situation:

the skid of the costs (coordination and construction) which was estimated at approximately 7,5 billion euros in 1987, were assembled finally to nearly 16 billion, that is to say more of the double; the amount of the interests of corresponding loans obère the profitability of the tunnel, and can even cancel it.
the weakness of the traffic carried out compared with the very optimistic forecasts of the first studies. Thus, a publicity of Eurotunnel, dated November 6th, 1987, announced 30 million travellers and 15 million annual tons of freight, whereas in 2003 the traffic was only of 6,8 traveller million and 1,5 million tons of freight. Eurotunnel announced that the group would place on July 13rd, 2006 under the protection of justice fault of being parvenu with an agreement with part of its creditors. The company collapses under a debt of almost nine billion euros.

The skid of the costs of construction is due primarily to an unjustified countable charge moreover of the double of the cost price of the construction which assembled 4.140.496 k£ at the 12/31/1993: foreign exchange rates 1£ = 8,71 F (annual report 1994 of Eurotunnel), are 36.063.720 KF, thus carrying the Fixed assets of setting in concession with 79.525.871 KF. There thus existed a variation of approximately 42,5 billion francs between the cost (supposed real) of construction and the entire amount of the Tangible fixed assets.

How did one make to charge this variation in Tangible fixed assets? It was by the means of the “productions immobilized” at a rate of approximately 1 billion euros per annum during seven years = 7 billion, invoiced subsidiary company with subsidiary company with the profit of a SEP French and consolidated with the “accounts combined” in only one line with the assessment " Actif" under a single heading of " Fixed assets put in concession". There no was money circulation, but the credits on-were inflated of 42 billion francs, which carried the active total to the assessment of the 12/31/1993 to: 81.276.693 KF. According to the ACTIVE accounting policy = PASSIVE, if the credit = 81.276.693 KF, the liability must be also = 81.276.693 KF. Result: if the credit comprises 42 billion - more exactly 42.938.206 KF - false Immobilizations, the liability also, comprises 42.938.206 billion “false equities” from where “false debts”.

Ten years of financial chaos

It results from it that the company, whose Capital stocks own S amount to 1,7 billion euros, is burdened with enormous a Dette of 9 billion euros, that is to say ten times its annual Turnover, and which the load of the Intérêt S, which rises with nearly 500 million euros in 2003, represents more than 50% of the turnover (838 million euros in 2003).

Course of purse of company, which was of 35 francs by action (that is to say 5,83 euros, for an entire amount of 1,17 billion euros) in 1987 at the time of the first subscription (then 25 francs in November 1990 for the second section which raised 870 million euros, and 22,50 francs in May 1994 for the third, which raised 1,07 billion euros), historical records reached on May 30th, 1989 with 13,95 euros, then quickly crumbled, losing 90% of its value, in spite of the successive recovery packages, to stagnate between 0,5 and 1 euro since 1995 (minimum with 0,34 euro on March 13rd, 2003). The Authority of the financial markets suspended the quotation of the Eurotunnel unit on May 15th, 2003.

Procedure of safeguard and APERTURE

The August 2nd 2006, the bankruptcy court of Paris places Eurotunnel under the protection of a procedure known as “of safeguard” . This decision taken for 6 months (renewable 2 times) makes it possible Eurotunnel to freeze its credits and to suspend the refunding of the interests of its debt of 9 billion euros. The line of business will be able to continue.

In March 2007, within the framework of a new financial reorganization, a APERTURE is launched making it possible to receive, against a unit Eurotunnel, an action of a new business, the Groupe Eurotunnel S.A. (GET) and a scrip certificate. The quotation of the Eurotunnel unit takes again on March 27th, 2007.

Since July 2nd, 2007, a new entity called GetSA was born following the success of the protection plan and the APERTURE subscribed to more than 90% of the shareholders. The company escapes the bankruptcy thus. It divided its debt by two. From now on, the economic situation and financial of the tunnel seems healthier, the traffic under the English Channel is in of progression and the operating surpluses cover the financial expenses.

Direction

Presidents

Patrick Ponsolle: July 1994 - April 2001 (copresident)
Charles Mackay: April 2001 - October 2004
Jacques Shirt: April 2004 - February 2005
Jacques Gounon: February 2005 -

Managing directors

Before April 7th, 2004: Richard Shirrefs
April 7th, 2004 - June 13rd, 2005: Jean-Louis Raymond
June 13rd, 2005: Jacques Gounon

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