Heavily indebted cross-channel tunnel operator Eurotunnel made a net loss of €837 million last year, the company said today.
Eurotunnel, which called the results "disappointing", said sales fell in the year because it responded too slowly to changes in the cross-Channel market, where it has faced tough price competition from ferry companies and low-cost airlines.
The Anglo-French firm, which is trying to restructure its heavy debts, said it expected financial restructuring measures to be in place before it reaches a point where it cannot meet its financial obligations.
Earlier this month, the company received a waiver to its credit agreement, allowing it to start renegotiating its crippling debt pile. The firm is trying to renegotiate €9.4 billion of debt to ease interest payments that in the first half of 2004 were more than double its operating profit of €103 million.
It is under pressure to make a restructuring deal with banks this year because it must pay all interest in cash from the end of December, instead of the current mix of cash and more debt. Eurotunnel said it was considering taking an additional credit line of up to €73 million.