In summer 2006, Chairman and Chief Executive Officer of Eurotunnel faces decisions on how to file for bankruptcy after failed to get the approval of the creditors by the court is ambitious restructuring plan. The company, which was an attempt to restructure its debt and operations for the past ten years, faces a number of challenges. Eurotunnel shares are listed together in the UK and France, and its shareholders, who are largely based in France, faced with the prospect of significant dilution in any restructuring plan. Currently, the chairman and chief executive officer of the company was only a year and a half, after a decade of senior management turbulence, in which the company has seen nine different CEOs and chairmen. The capital structure of Eurotunnel is amazingly complex, and much of its debt was held U.S. hedge funds that specialize in investing in distressed companies. Finally, business-Eurotunnel is extremely difficult to value, and faces significant competition. If the current Chairman / CEO decides to file for bankruptcy, he is faced with the added choice whether to file for bankruptcy in the UK or in France, who have very different approaches to the restructuring of distressed companies. "Hide
by Stuart C. Gilson, Vincent Dessain, Sarah L. Abbott Source: Harvard Business School 23 pages. Publication Date: March 3, 2009. Prod. #: 209062-PDF-ENG
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