Eurotunnel, the debt-laden operator of the Channel Tunnel rail link, is seeking crunch talks with governments, bondholders and equity investors in a bid to radically overhaul its financial position - as after-tax losses for 2003 hit more than £1.3bn ($2.4bn).

Eurotunnel, which has net debts of £6.4bn, wants to refinance large chunks of its debt, as well as buy back existing bonds that are trading at below face value, and extend the maturity deadlines for repayments on portions of its debt.