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. Last Updated: 07/27/2016

Tunnel Avoids Crisis

LONDON -- Eurotunnel's creditor banks approved a reorganization of ?8.7 billion ($14.8 billion) in debt, averting the threat of bankruptcy for the operator of the Channel Tunnel after two years of often tortuous talks.

While the plan means pain for both banks and shareholders, analysts said it is the only way to avoid bankruptcy proceedings that could have triggered a lengthy cross-border legal battle and kept capital tied up indefinitely.

"There wasn't really a credible alternative," said Richard Hannah, an analyst with UBS Ltd. "It's taken two years to reach this stage, and if anyone had a different proposal it would have taken even more time while the tunnel was still floundering."