July 13, 2024

Eurostar gets rescue package

Eurostar has secured a refinancing package of £250 million from shareholders and banks.

The rail operator said the package secures its future as restrictions ease and travel begins to gradually resume.

It will also allow Eurostar to complete its merger with Thalys as part of the Green Speed project3.

Eurostar claims it has been harder hit by the pandemic downturn than any other European train operator or rival airline.

The £250 million package consists of £50 million equity from shareholders, £150 million in new loans from banks that are guaranteed by shareholders, and £50 million from restructured existing bank loans.

“Everyone at Eurostar is encouraged by this strong show of support from our shareholders and banks which will allow us to continue to provide this important service for passengers,” said Chief Executive Jacques Damas.

“The refinancing agreement is the key factor enabling us to increase our services as the situation with the pandemic starts to improve.

“Eurostar will continue to work closely with governments to move towards a safe easing of travel restrictions and streamlining of border processes to allow passengers to travel safely and seamlessly. Their co-ordinated actions and decisions are crucial to the restoring of demand and the financial recovery of our business.”

From May 27, Eurostar’s London-Paris route will return to two daily return services and three per day from the end of June, with a view to gradually increasing the frequency over the summer period as travel restrictions are eased.