News

Shares in Channel tunnel operator Eurotunnel fell dramatically on the first day of trading in their new form following a debt restructuring.

The process was completed last Friday (29 June) after it reached a deal with creditors to slash its debt and convert shares in the near-bankrupt Eurotunnel into new stock in its replacement Groupe Eurotunnel.

Within hours of the market opening, the shares had tumbled 44%, from 75 euro cents to 42 cents. Shares in the old Eurotunnel - which are to be delisted, also fell.

The company's debt has now been cut in half from the previous nine billion euros. Chairman Jacques Gounon said: "We have successfully turned a new page and Groupe Eurotunnel can now take its place among other large businesses with an expanding future."

Eurotunnel never made a profit due to the cost of building the Channel tunnel being much higher than anticipated and because there was much less traffic through it than had been estimated. Under the restructuring the original shareholders' stake in the company fell to just 13%. They were mostly individuals - rather than institutional investors and saw the value of their investment plummet.