Consortium Having Money Problems on Channel Tunnel

Eurotunnel, the Franco-British consortium responsible for building the English Channel tunnel between England and France, said Monday that it is having serious difficulties in raising $3.74 billion required to complete the project.

The financing was to have been completed this month, but so far less than a third of the amount has been raised, the consortium said.

Eurotunnel informed the British and French stock market authorities that completion of the financing package might have to be postponed until September.

The banks handling the financing of the tunnel had asked the banking syndicate to push back the deadline for completing the package, Eurotunnel said.

Of 210 banks involved in negotiations, 93, representing 31% of loan financing for the project, have so far declined to participate, and 26 banks covering 11% have not replied to the request.