0918198896

Eurotunnel Creditor Oaktree Won't Vote for Debt Plan (Update2)
Thủy 0918198896

By Tracy Alloway and Evan Roth
Nov. 24 (Bloomberg) -- Eurotunnel SA creditor Oaktree Capital Management LLC said it will vote against an ``unfair'' plan by the struggling tunnel operator to exit bankruptcy protection.
``The proposed method of decision-making is inherently unfair,'' Los-Angeles based Oaktree said in a statement today. ``We are not aiming for special treatment. We have a right to be treated as fairly as other stakeholders.''
Under the proposed plan, creditors have been organized into tiers based on the type of debt they hold. Holders of senior debt, including Deutsche Bank AG, will be repaid in full. Mid-level creditors, or `Tier 3,' will get 150 million pounds ($289.8 million) in cash and 1.05 billion pounds of convertible bonds.
Oaktree, which is classified as ``Tier 3,'' said in the statement that the proposal is less favorable to holders of mid- level credit than an earlier plan. It wants the tiers of creditors to vote on the plan separately, it said.
Today's announcement comes after requests to Eurotunnel management for more information about the plan went unanswered, Oaktree said. ``More than ever we want a sound future for Eurotunnel which presupposes a reopening of negotiations.''
Eurotunnel sent a letter to its creditors with additional information about the plan to be voted upon next week, the company said in an e-mailed statement today.
``After having listened to its creditors and received their comments, Eurotunnel has provided additional information and clarifications through an addendum sent to creditors by the court- appointed representatives,'' the company said.
Long-Term Financing
The letter included points on which legal entities will receive long-term financing under the plan, how creditors who receive convertible bonds would be able to resell them to other creditors, and details on how shareholders can subscribe to convertible bonds, said Eurotunnel spokeswoman Mady Chabrier.
The company said Nov. 14 that it would support a debt plan with changes that didn't ``significantly'' alter the balance among creditors, bondholders and shareholders. The company plan would cut its 6.2 billion pounds of debt by more than half.
Oaktree's main objections to the plan are a reduction in the amount of equity it would get in a new company and lower premiums if Eurotunnel buys back the bonds. The earlier plan and a modified version on July 12 failed because Deutsche Bank AG and other bondholders complained they received too little. Under all plans, shareholders would be left with 13 percent of the company.
Debt Plan
Eurotunnel, operator of the rail link between the U.K. and France, submitted a debt restructuring plan to the Paris commercial court on Oct. 31 after receiving protection from creditors on Aug. 2. Lenders will vote on the proposal on Nov. 27, with suppliers voting the same day. Bondholders will vote a week later in a ``consultation'' whose outcome doesn't determine whether the plan can be accepted by the court.
Oaktree will not attend the creditors' meeting. The investment fund lost an initial decision late yesterday in the Paris Commercial Court. It had said it should be excluded from the creditors committee. It will appeal the court ruling.