Times Online – Two US hedge funds are suing Eurotunnel because they are unhappy that the company was restructured under French insolvency law this summer.
Elliott Advisors, an arm of New York hedge fund Elliott Associates, and Resurgence Asset Management, both based in New York, were among creditors of the Channel Tunnel group that believe they would have received more in the British courts.
Eurotunnel said that the first part of the litigation, which will reexamine whether the group was mainly a French business, will open in the next few weeks in a Paris court. The company is confident that it will overturn the case brought by the US hedge funds.
“I am fully comfortable with this litigation,†Jacques Gounon, chairman and chief executive, said. “They have discovered that French law is different from UK law so if you are doing your job you can use some levers in French law, which has been a big surprise for them.â€Â
