After months of being in an awful financial situation due to the impact of Covid 19, there is good news finally about Eurostar. 😀🙂 This was reported yesterday.
I am quoting the article from City AM. It says.
”Eurostar receives £250m refinancing package after months of waiting”.
“Eurostar today announced that it had received a £250m refinancing package from a group of banks in a bid to shore up its finances amid the Covid-19 pandemic.”
“The firm said that the deal, which comprises £50m shareholder equity, £150m shareholder guaranteed loans and £50m restructured existing loan facilities, would be guaranteed by majority shareholder SNCF, the French state rail group.”
“The cross-channel rail link has been calling for financial support for months, with passenger numbers having fallen to 95 per cent of pre-pandemic levels.”
“But UK ministers repeatedly demurred, with transport secretary Grant Shapps saying that the company was “not our firm to rescue”.
So basically France (particularly SNCF) have played their part to save Eurostar. Giving them a bailout package. Knowing that if Eurostar (Cross Channel train service connecting the UK, France, Belgium & the Netherlands) is not saved without financial rescue package, it would meant that Eurostar is out of business (becoming defunct) & that it would had been a different story. It would had been a devastating news for travellers who would want to go on the train from the UK to three European destinations in mainland Europe (& which it would mean everyone would have two mode of transport: Plane & car instead of train if there were no Eurostar at all).
So yeah, it is a relief that Eurostar receives the bailout package & that will not be out of business. However I am very disappointed with the UK government for still not wanting to play their part to rescue Eurostar. They selfishly played the Brexit politics, saying Eurostar is not “ours” despite it is an British registered company & that Eurostar does go to London St Pancras. Eurostar train service since it is international train service is not affiliated with the European Union. Because of the fact that the UK is not member of the EU & that it sold off Eurostar in 2015, they (the govt) wouldn’t want to be associated with anything “European”. If there was a train service called “Britstar”, the British government wouldn’t behaved selfishly & that they would want do anything to save a train/rail operator regardless if it is British or Foreign.
Anyhow let me continue quoting the article.
“The UK sold its stake in Eurostar for £750m in 2015 under David Cameron’s government. It is now majority owned by French rail company SNCF, as well as two pension funds.”
“Commenting on today’s refinancing package, Eurostar chief executive Jacques Damas said: “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.”
“The refinancing agreement is the key factor enabling us to increase our services as the situation with the pandemic starts to improve.”
“Export Development Canada, Barclays, Credit Agricole Corporate and Investment Bank, Société Générale, Natwest and BNP Paribas are the lenders behind the deal.”
“Adam Tyndall, programme director for Connectivity at London First, said: “The bailout will come as a relief for those who use the service, but should also been seen as a vote of confidence in London’s post-pandemic status as a top tier global city.”
“Now that its immediate future is secure, governments across Europe must continue to work together to safely reopen travel, so that the capital can once again welcome visitors from the continent.”
“Darren Caplan, chief executive of the Railway Industry Association (RIA), said: “It is positive to see a deal reached to keep Eurostar operating.”
“This deal gives Eurostar and rail suppliers the confidence and certainty they need, to enable Eurostar to continue to deliver services, and support the wider UK economy, as we emerge from the Coronavirus pandemic and seek to help reboot the UK’s connectivity and economic recovery in the difficult months ahead.”
“With France and Belgium currently on the UK’s amber list for travel, there is just one service a day currently running to each destination.”“From 27 May, that will increase to two a day on the Paris-London route, with plans to hike that to three in June.”
Sources: t.co t.co leparisien.fr google.co.uk bloomberg.com
Reported by City AM, BBC News, Le Parisien, Politico Europe & Bloomberg.
All the months, I have been writing blog posts about plenty of times. Now I am happy to say that I have played my part to save the beloved Eurostar train. Given I once travelled on the Eurostar train to Paris, France in summer of 2019. I hope in the future, I would want to travel again on Eurostar to Paris & other destinations in Continental Europe.
The work is done. Everyone signed the petitions to make sure Eurostar will not go bust & that it continues to be in existence now it is no longer in danger of bankruptcy and financial collapse. 🚄🇬🇧🇫🇷🇧🇪🇳🇱🇪🇺⭐️😀🙂
Check out my previous five blog posts about Eurostar.
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