Eurotunnel, the channel tunnel operator poised to stave off bankruptcy at the eleventh hour, has chosen three banks to arrange its bailout package.

The company's board said yesterday it had selected Goldman Sachs, Deutsche Bank and Citigroup to arrange a long-term loan of £2.84bn (€4.2bn) in two tranches and to underwrite a total of £965m in sterling and euro convertible bonds for junior debt holders.