Wednesday, May 03, 2006
Eurotunnel digs a deeper hole
Just when you think it can only get worse at Eurotunnel, it does. The shares have been suspended.
The Financial Services Authority temporarily suspended Eurotunnel shares early this morning after the channel tunnel operator failed to produce its results for the 2005 calendar year despite having had four months to tot up the figures since the year end.
Amazingly, the shares had already added 1.5p to 26.5p first thing despite Eurotunnel's obvious discomfort so some trusting souls snapped up shares that they may not be able to sell for some time.
Meanwhile, financial news agency AFX reports from Paris that bondholders are protesting that chairman Jacques Gounon is ignoring them as he attempts yet another restructuring of the company's massive debt, currently reckoned to be top side of £6bn.
European financial institutions including Deutsche Bank have formed a group representing 60% of bondholders owed a cool £2bn between them.Their spokesman Jean-Pierre Mattei is quoted as saying: 'Jacques Gounon wants to ignore us.'
Perhaps those who were foolish enough to pour their money down a bottomless pit should be asking themselves what Gounon can possibly have to say to them.
How about: 'I can't even get the accounts together, let alone suggest a way of paying £6bn out of the proceeds of a lossmaking company that has no real prospect of ever paying its way unless you all write off most of what you are owed. Push me and you get nothing.'
Debt payments have been waived for a third time, with the latest deadline July 12th. This is a classic case of: if you borrow £100, that's your worry; borrow £1bn and that's the bank's worry.
The Financial Services Authority temporarily suspended Eurotunnel shares early this morning after the channel tunnel operator failed to produce its results for the 2005 calendar year despite having had four months to tot up the figures since the year end.
Amazingly, the shares had already added 1.5p to 26.5p first thing despite Eurotunnel's obvious discomfort so some trusting souls snapped up shares that they may not be able to sell for some time.
Meanwhile, financial news agency AFX reports from Paris that bondholders are protesting that chairman Jacques Gounon is ignoring them as he attempts yet another restructuring of the company's massive debt, currently reckoned to be top side of £6bn.
European financial institutions including Deutsche Bank have formed a group representing 60% of bondholders owed a cool £2bn between them.Their spokesman Jean-Pierre Mattei is quoted as saying: 'Jacques Gounon wants to ignore us.'
Perhaps those who were foolish enough to pour their money down a bottomless pit should be asking themselves what Gounon can possibly have to say to them.
How about: 'I can't even get the accounts together, let alone suggest a way of paying £6bn out of the proceeds of a lossmaking company that has no real prospect of ever paying its way unless you all write off most of what you are owed. Push me and you get nothing.'
Debt payments have been waived for a third time, with the latest deadline July 12th. This is a classic case of: if you borrow £100, that's your worry; borrow £1bn and that's the bank's worry.
