This marks a further step in the administration procedure announced in March, and is the consequence of its failure to reach an agreement on debt restructuring.

"The objective for TP Ferro and its shareholders remains the same: to quickly reach an agreement with all the parties involved and find a definitive solution regarding the unsustainable and precarious business model of the concession," the company said in a statement.

TP Ferro has debts of more than €400m - half of which is in the hands of distressed securities funds - and has repeatedly tried to involve the French and Spanish governments along with its creditors to find a solution to its financial difficulties, with proposals ranging from a partial debt release to a full state-funded bailout.
Madrid and Paris have rejected previous attempts from the company to obtain €350m in compensation for additional costs incurred during the construction of the €1bn line, 60% of which was funded by both states, with the remaining 40% financed by TP Ferro in exchange for a 50-year concession.

The concessionaire and both governments have made it clear that international high-speed and freight trains will continue to operate as normal despite the administration procedure.