Shares in Babcock & Brown Limited, the troubled Australian investment bank that owns Eircom through its subsidiary Babcock & Brown Capital, fell a further 7.7 per cent today to $2.05 Australian dollars, taking its 2008 loss to 92 per cent.
The shares slumped a record 36 per cent yesterday after posting its first loss and after its chief executive officer Phil Green resigned.
Babcock's shares have gone into freefall since the global credit markets seized up a year ago, cutting off access to cheap loans to finance acquisitions of ports, power stations and airports, which it bundled into funds it manages.
It is now being forced to sell some assets at a loss to reduce debt after bankers raised interest rates following the share-price slump.
Babcock, the worst-performing stock on the MSCI Asia- Pacific Index this year, said net income in the six months ended June 30th fell 24 per cent to A$150.9 million as the value of its listed funds slumped.
It posted A$441 million of writedowns in the half as its listed funds dropped and banks pressured the company to sell assets.
Yesterday the bank announced that chief financial officer Michael Larkin would replace Mr Green.
Jim Babcock, who founded the company in 1977, also stepped down as executive chairman.