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Eurotunnel to continue talks with Goldman Sachs, Macquarie Bank - UPDATE
05.18.2006, 04:25 AM

(updates with details of possible consortium members, Eurotunnel debt)

LONDON (AFX) - Eurotunnel SA/Eurotunnel PLC said it is postponing a mid-May update and is asking for its shares to remain suspended in Paris and London while the Channel tunnel operator continues discussions with creditors and the Goldman Sachs Group Inc/Macquarie Bank Ltd consortium.

'The possible enlargement of this consortium has led to the negotiations being prolonged,' Eurotunnel said.

'The group will continue to observe the confidentiality surrounding the negotiations,' it said.

French construction group Vinci is 'not uninterested' in an advisory role at Eurotunnel and would be ready to invest up to 'few tens of millions of euros', Antoine Zacharias, Vinci chairman, told Vinci's AGM on Tuesday.

The Financial Times said today that said there may also be a role in the deal for Barclays PLC.

Eurotunnel is seeking to restructure its 6.18 bln stg debt and has obtained a third waiver on debt payments, until July 12, while talks continue with creditors.

According to reports, the restructuring is expected to include the issuing of a 1 bln stg bond that will convert into equity after three years.

Eurotunnel refused to submit its 2005 results within the 120 day deadline set by the London Stock Exchange, saying it could not be sure the company is a going concern until it has finalised a debt deal.