Eurotunnel in red in spite of surge in sales
Cross channel rail operator Groupe Eurotunnel says it will not post a profit this year unless it receives further insurance payouts for a tunnel blaze in 2008.
The embattled firm made a first-half loss of €45m (£38m) despite sales rising 22 per cent to €331m. It booked €33m in insurance indemnities last year but said it only received half of that. It is awaiting the payment of the remaining €16m, as well as another €59m relating to the same accident, which was blocked following a legal challenge by train operator Eurostar.
Chief executive Jacques Gounon said: “It is not the traffic that is pushing us into the red, it is the insurance.”
Eurotunnel is no stranger to legal challenges, with disputes dogging the firm since its ambitious construction started in 1988. Gounon negotiated a massive debt restructuring that won final court approval in January 2007.
Goldman Sachs is currently the biggest shareholder with a stake of 17 per cent.