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Eurotunnel “could be bankrupt by 2007″
Travel and tourism shares suffered once more yesterday as London’s main equity indices dropped back sharply.
The FTSE 100 index lost 19.4 points to end the day at 4845.5, while the FTSE 250 had an even worse session, dropping 63.1 points to close at 6953.7.
The Guardian reports that the channel tunnel operator Eurotunnel has warned that it could go bankrupt within two years if its bankers are not prepared to write off some £6 billion worth of debts. The company reportedly said that though its 2004 losses had fallen to £570 million from £1.3 billion the previous year, revenues were down seven per cent.
Though it managed to turn a profit on its operations, of £171 million, it paid out nearly £300 million on its debts, the newspaper reports.
Chairman Jacques Gounon is quoted as saying: “If the debt is not drastically improved, Eurotunnel will not make it through the first quarter of 2007.”
Creditors, however, were reported to be less than happy about being asked to write off their debts. Shares in the company dropped 0.25p to 14.5p. Alpha Airports 97.5p UP 0.5p Avis Europe 72p UP 1p BAA 584.5p DOWN 5p British Airways 247p DOWN 3.25p CNG Travel Group 63p DOWN 0.5p Carnival 2709p DOWN 51p CenterParcs 63.5p NO CHANGE De Vere 550p DOWN 8.5p EasyJet 230p DOWN 0.5p ebookers 319.5p NO CHANGE EuroDisney 9.5p NO CHANGE Eurotunnel 14.5p DOWN 0.25p First Choice 172p DOWN 3p Hilton Group 280.75p DOWN 6p Holidaybreak 660p DOWN 0.5p Intercontinental 631.5p DOWN 10.5p Lastminute.com 110p DOWN 1.75p MyTravel 5.5p NO CHANGE P&O 279p DOWN 1.75p Rank Group 265.5p DOWN 2p Ryanair 392p DOWN 0.625p Stagecoach 108.5p DOWN 0.5p
Report by Tim Gillett, News From Abroad Ltd www.newsfromabroad.com
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