Eurotunnel's executive chairman yesterday turned up the temperature in his battle with the company's bondholders, saying the Channel Tunnel operator would pay no debt interest, while under bankruptcy protection and accusing Deutsche Bank, the largest bondholder, of wrecking restructuring talks.

The statements from Jacques Gounon came as ratings agencies downgraded the Channel Tunnel operator's debt on fears creditors were less likely to be paid following the failure of restructuring talks early yesterday and the company's pressing ahead with moves to seek bankruptcy protection.

Many observers had expected Eurotunnel to continue making interest payments on its £6.18 billion (€9 billion) debt over the next few months because it has enough cash to meet all its obligations until January. It has so far not defaulted on any payments.

However, Mr Gounon said the only significant difficulty created for anyone involved with the company by its seeking bankruptcy protection was for creditors.

The company said it was not a deliberate decision to suspend interest payments while under bankruptcy protection, but that it was an automatic consequence of the step of seeking protection.

Mr Gounon blamed the failure of talks on Deutsche Bank, the largest holder of the lowest-ranked debt, and warned the bank might face wider consequences from its actions.