Eurotunnel chief executive Jean-Louis Raymond resigned today after a row with chairman Jacques Gounon over how to solve the Channel tunnel operator's debt mountain.
The expected departure of Mr Raymond, who introduced Eurotunnel's cost-cutting (DARE) strategy, could destabilise the company further after the departure of other board members and only a week before its annual shareholder meeting.
"The chairman of Eurotunnel has publicly criticised the management over the last few weeks for purely political reasons," Mr Raymond said in a personal statement sent to media.
"Yesterday I signed an agreement with unions and staff representatives after several months of negotiations. The fact that the chairman has chosen to voice publicly his criticism of such an important agreement is quite unacceptable, can only be against the company's interests and has forced me to draw my own conclusions."
Sources close to the board had told reporters earlier this week that Mr Raymond and fellow board member Herve Huas were seen being forced to leave due to disagreements with Mr Gounon, particularly over how to tackle the Anglo-French sub-sea operator's £6.4 billion debt.
Mr Huas co-ordinated Eurotunnel's debt restructuring until January, when Mr Gounon took over.
The company agreed with its creditors in April on a legal framework for talks to reduce its debt, but discussions have since stalled as Mr Gounon has taken a stronger pro-shareholder view, calling for creditors to wipe out €5.7 billion of debt without compensation.
Mr Raymond and Mr Huas were expected to step down regardless of who won a contest between shareholder activist Nicolas Miguet and Mr Gounon for the chairman's post at the June 17th agm, the sources had said.