Financial distress, lender passivity and project finance : the case of Eurotunnel

The paper analyzes the difficulties of Eurotunnel, both the largest project finance company and one of the largest private workout in the history. The project finance structure was at the origin of major agency conflicts that contributed to underperformance. We also investigate why the numerous banks did not trigger bankruptcy despite Eurotunnel s chronic distress. Lender passivit..