Goldman Sachs 2007 Annual Report Download - page 23

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We see opportunity
In complex
restructurings and
lasting solutions
EUROTUNNEL GROUP
Eurotunnel developed and operates
two rail tunnels below the English
Channel, connecting the United
Kingdom and France. Since opening
in the spring of 1994, Eurotunnel
has transported 212 million
passengers and 195 million tonnes
of merchandise. However, as a
result of overly optimistic revenue
projections and construction cost
overruns, Eurotunnel carried an
unsustainable debt burden. After
a series of temporary restructurings,
the Eurotunnel Group was
seeking a permanent solution.
Combining expertise from our
Infrastructure Investment Group,
Investment Banking and distressed
debt trading teams, Goldman
Sachs approached Eurotunnel to
discuss potential solutions. In
an extremely complex transaction,
Goldman Sachs worked
collaboratively with Eurotunnel
and existing creditors to provide
a number of cash and partial
cash alternatives to accelerate the
restructuring process. This
included involvement by numerous
creditors, multiple financial
advisors, the French and U.K.
governments, and specialty
monoline insurance companies.
In the end, Goldman Sachs and
bank partners funded £2.84 billion
in new capital, replacing the
existing £6.2 billion in debt. In
addition to the cash, creditors
received convertible debt bonds
totaling £1.3 billion.
Post-closing, total Eurotunnel assets
increased significantly in value
and the company is conservatively
capitalized for the first time since
construction.
21Goldman Sachs 2007 Annual Report