EUROTUNNEL will not go into liquidation after its creditors backed the Channel Tunnel operator's latest debt restructuring plan.

The company, which ran up huge debts during the project to build the Channel Tunnel, owes £4.2billion.

But under the agreement a new firm, Groupe Eurotunnel, will bid for Eurotunnel's shares in the early part of 2007. Current shareholders will have a minimum 13 per cent stake in the new company.

Groupe Eurotunnel will receive a £2.8billion loan from a banking consortium.