THE Channel Tunnel operator has warned it may not be able to continue operations next year.

In a bleak financial assessement, debt-crushed Eurotunnel said that without a new financial structure, the company would not be able to meet its contractual obligations.

Jacques Gounon, Eurotunnel chairman, said: "We cannot guarantee the future of the goup in 2007 unless there is a global financial restructuring."

The Anglo-French company, which is now run from France, owes £6.2 billion. It has asked creditors to extend existing waiver arrangements.

Eurotunnel’s situation is set to worsen with the end of the minimum usage charge at the end of the year.

This charge gives the company guarateed revenue for rail travel irrespective of the number of passengers carried by Eurostar or the amount of freight carried.

Eurotunnel wants creditors to agree a contract "standstill" to allow operations to continue while further talks take place.

Meanwhile, Eurotunnel issued provisional annual results showing that revenue edged up one per cent last year to £541 million.

Income from shuttle services rose four per cent to £295m, up four per cent and the first increase since 2002.

The company said that a major overhaul of operations last year had led to an improvement in productivity and profits.