Paris (AFP)

Eurostar, a 55% -owned subsidiary of SNCF, announced on Tuesday that it had reached a financing agreement with its shareholders and banks to escape imminent bankruptcy, while it only operates a daily return trip between Paris and London instead of a fortnight before the pandemic.

The cross-Channel company, which also only provides one London-Brussels-Amsterdam a day at the moment, absolutely had to find new money before the end of May-early June to avoid filing for bankruptcy.

It has suffered a considerable drop in its customer base, more important than any other European rail operator or competing airline, she noted in a statement.

However, Eurostar suffers from being perceived in the United Kingdom as a French public company while it is often seen in France as a British company since it is based in London.

It has therefore not succeeded in benefiting from direct aid or loans guaranteed by the States, unlike the airlines.

# photo1

The funding found, amounting to 250 million pounds (290 million euros), will allow it "to meet (the) financial obligations in the short and medium term," said the company.

"The strong financial commitment of shareholders with the banks is the key factor that will allow us, in the immediate future, to boost activity as and when the expected improvements in the control of the pandemic" of Covid-19, noted Eurostar CEO Jacques Damas.

"The disaster is possible," he told AFP in January.

SNCF Voyageurs CEO Christophe Fanichet welcomed Tuesday "this refinancing, which is a major step to ensure the sustainability of Eurostar and travel between the Continent and Great Britain".

- Merger with Thalys -

The company sees reasons for hope: it must increase its offer to two daily round trips on the London-Paris line on May 27, then add a third service from the end of June.

It will "increase the frequency gradually over the summer, as travel restrictions are expected to ease."

# photo2

Eurostar offered before the pandemic between 15 and 18 daily rotations Paris-London and a dozen on London-Brussels (three of which had just been extended to Amsterdam).

Director-General Jacques Damas now intends to intensify his exchanges with governments "for a controlled relaxation of travel restrictions and for safe and fluid arrangements for cross-border control".

The deal announced Tuesday includes the contribution of £ 50 million of equity by its shareholders, a loan of 150 million guaranteed by these same shareholders and 50 million of existing credit facilities restructured.

The banking syndicate that came to the rescue included Export Development Canada, Barclays, Credit Agricole Corporate and Investment Bank, Société Générale, Natwest and BNP Paribas.

In addition to SNCF, Eurostar is 40% owned by the Patina Rail consortium - made up of 30% of the Caisse de dépôt et placement du Québec and 10% of the British fund Hermes Infrastructure - and 5% by the Belgian SNCB.

These shareholders have already contributed 210 million euros.

# photo3

At the same time, Eurostar has undertaken to drastically reduce its costs, put its workforce on short-time work and has already borrowed 400 million pounds (450 million euros), consumed.

Another objective is the merger of Eurostar with the Franco-Belgian company Thalys - a 60% subsidiary of SNCF and 40% of SNCB -, announced in autumn 2019 and expected by the end of the year. according to Alain Krakovitch, general manager of Voyages SNCF, the branch that oversees mainline trains, including TGVs.

Thalys has also suffered from the pandemic and for the first time in its history is seeking external funding this year.

The Eurostar-Thalys merger should make it possible "to seek synergies", to make savings by optimizing the rotation of trainsets or by unifying IT and distribution systems, Mr Krakovich recently explained to AFP. being to "develop in Northern Europe".

© 2021 AFP