French Court Mulls Eurotunnel's Future

Law360, New York (July 24, 2006, 12:00 AM EDT) -- Barring an unlikely last-minute agreement between Eurotunnel and its creditors, a French court will decide Tuesday whether the English Channel tunnel operator qualifies for bankruptcy protection.

The French court could appoint an administrator to lead talks between Eurotunnel and its creditors, or it could give the two sides more time to negotiate. It could also reject the company’s petition for a “safeguard procedure,” a process similar to Chapter 11 protection in the United States.

Under the French bankruptcy system, which was revamped this January, the creditors...
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