| Code | DS/UK/48 |
| Corporate Name | Eurotunnel PLC |
| Dates | 1986 - |
| Activity | In January 1986, Channel Tunnel Group/France-Manche (CTG/FM) was selected to develop and operate a channel fixed link (CFL). Transmanche-Link (TML), an Anglo-French consortium of contractors, was formed to build the channel tunnel, while Eurotunnel, were the promoters, owners and concessionaire. The project was to be financed privately, with no recourse to public funds. In the main, funds were to be provided via private placements, public share offers and syndicated bank loans. However, Eurotunnel found it difficult to raise sufficient equity, particularly when costs spiralled. Frequent disputes between Eurotunnel and TML only exasperated matters. The Bank of England stepped in 'unofficially' on various occasions to encourage take-up and mediate between conflicting parties.
The Bank (specifically, David Walker (Executive Director)) was heavily involved in achieving the UK share of 'Equity 2' issued in Oct 1986. The Bank also played a leading role in selecting Alastair Morton to succeed Lord Pennock as Co-Chairman of Eurotunnel (Jan/Feb 1987). In Feb 1990, the Governor (Robert (Robin) Leigh-Pemberton) was called upon to mediate between Eurotunnel/TML/the project banking syndicate and, in Jun-Sep 1990, 'Debt 2' was secured only with the intervention of the Bank. Further to this, the Governor and Pen (Pendarell) Kent (Associate Director) were instrumental in orchestrating the trilateral talks (Jun 1993) that resulted in a pivotal and hard-won protocol between Eurotunnel/TML/the project banking syndicate. |
| Source | Terry Gourvish, 'The official history of Britain and the Channel Tunnel'. |
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