Eurotunnel chief quits

This Is Money13 April 2012

CHANNEL Tunnel operator Eurotunnel faced fresh turmoil today after the debt-laden firm's chief executive quit in the wake of a boardroom row.

Jean-Louis Raymond, who took the helm after a shareholder revolt last year, is said to have clashed with chairman Jacques Gounon as the group looks to tackle an estimated £6.2bn debt mountain.

His resignation comes just a week before the company's annual meeting, when shareholders are expected to question the board over its strategy for coming up with a rescue deal with lenders in time to avoid bankruptcy.

The company said Mr Raymond would step down at a board meeting on Monday, when directors were also expected to take 'the necessary decisions' in terms of appointing a successor. He will remain as a non-executive board member.

Eurotunnel faces a number of changes to its finances in the next couple of years that will worsen its predicament, including the repayment of capital on its loans from the beginning of 2007.

Mr Raymond became chief executive after rebel shareholders succeeded in replacing Eurotunnel's entire Anglo-French board with a new, all-French team at the group's annual meeting in Paris in April of last year.

The chief executive said he had been unhappy at recent comments from his chairman, particularly criticism of the current management.

The matter came to a head after Mr Raymond secured the cooperation of employee representatives on a way forward on restructuring and cost cutting.

He said: 'The president (chairman) of Eurotunnel has publicly criticised Eurotunnel management over the last few weeks, for purely personal political reasons.

'Yesterday I signed an agreement with unions and staff representatives after several months of negotiations. The fact that the president has chosen to voice publicly his criticism of such an important agreement is quite unacceptable, can only be against the company's interests and has forced me to draw my own conclusions.

'I have therefore handed in my resignation as chief executive to the chairman of the board but I will remain a Eurotunnel board member. At our annual general meeting next week I will be happy to explain to shareholders the action I have taken in their name.'

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