Eurostar secures €290m rescue package to save it from bankruptcy
Eurostar said on Tuesday that it had secured a €290-million rescue package to keep it afloat while waiting for Covid-19 travel curbs to be lifted.
The company, which had been on the verge of bankruptcy, said the funds provided by shareholders and banks would "secure Eurostar's future".
Eurostar has continued to run a skeleton service even throughout the strict lockdown and travel bans between France, the UK and Belgium, but receiving only a fraction of its usual income.
OPINION The Eurostar is a vital service for Britain and France and should be saved
The London-based company has struggled to access government financial aid due to its ownership structure, with both the British and French governments reluctant to assume sole responsibility for bailing out the company.
It began as a joint venture between the British and French governments, but then the British sold off its share to private investors.
The group is now 55 percent owned by the French national rail provider SNCF, 30 percent by Canadian institutional fund manager Caisse de depot et placement du Quebec (CDPQ), 10 percent by Britain-based fund Hermes Infrastructure, and five percent by the Belgian railway SNCB.
Eurostar had been gradually expanding its services, with new lines opened up from London to Amsterdam, the Alps, the south of France and other destinations in recent years in addition to the regular lines between Paris and Brussels.
Its €290 million refinancing package is made up of €58 million in new shareholder equity, €175 million in shareholder-guaranteed loans and €58 million in restructured loans.
Eurostar said the deal would help it meet its financial commitments in the "short and medium-term".
The company plans to start running more trains between Paris and London over the summer.
Comments (2)
See Also
The company, which had been on the verge of bankruptcy, said the funds provided by shareholders and banks would "secure Eurostar's future".
Eurostar has continued to run a skeleton service even throughout the strict lockdown and travel bans between France, the UK and Belgium, but receiving only a fraction of its usual income.
OPINION The Eurostar is a vital service for Britain and France and should be saved
The London-based company has struggled to access government financial aid due to its ownership structure, with both the British and French governments reluctant to assume sole responsibility for bailing out the company.
It began as a joint venture between the British and French governments, but then the British sold off its share to private investors.
The group is now 55 percent owned by the French national rail provider SNCF, 30 percent by Canadian institutional fund manager Caisse de depot et placement du Quebec (CDPQ), 10 percent by Britain-based fund Hermes Infrastructure, and five percent by the Belgian railway SNCB.
Eurostar had been gradually expanding its services, with new lines opened up from London to Amsterdam, the Alps, the south of France and other destinations in recent years in addition to the regular lines between Paris and Brussels.
Its €290 million refinancing package is made up of €58 million in new shareholder equity, €175 million in shareholder-guaranteed loans and €58 million in restructured loans.
Eurostar said the deal would help it meet its financial commitments in the "short and medium-term".
The company plans to start running more trains between Paris and London over the summer.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.