Eurotunnel's bank debt was trading actively several points lower after the company announced it will pursue a restructuring. Traders said the company's Tier 2 bank debt was changing hands in the 77-80 context and that the Tier 3 debt was trading in the 56-61 range. The company said it would look to reduce its debt and interest payments, as well as extend its maturities in an effort to stabilize its financial structure.
Eurotunnel announced its preliminary results for 2003, noting that operating revenue fell by 5% to £566 million. "Although commentators are increasingly more optimistic about the overall economic prospects for 2004, there are still no signs of improvement in the cross-Channel market. The market remains depressed and price competition is fierce," noted company officials in a written statement. Calls to Robert Burge, Eurotunnel cfo, were referred to a spokesman, who declined comment.