Eurotunnel chairman Jacques Gounon, has admitted that the debt-ridden company has until mid-July to submit its proposals to sort out its financial afairs. If a deal isn't struck, the company could be forced into administration..

Gounon claims that the company can sustain no more than £2.2 billion of its £6.2 billion debt, and is demanding that its fancial backers write off the remaining £4.2 billion.

A source close to the lenders is reported to have said that unless Gounon comes up with a better proposal, the lenders would be obliged to put the company into administration in October.

Despite an anticipated rebellion against him, Gounon was elected as Eurotunnel's chairman at the AGM on 17 June, with 98.27% of the votes in his favour.

Speaking after the meeting, Gounon said: "Now it is time for some calm, for us all to get back to business. The negotiations ahead will be hard and time is short. We are determined to succeed and now we have the strength."