Concordia shares plunge nearly 40 per cent as it seeks to cut debt by $2-billion

Shares of Concordia International Corp. plunged below $1 on Friday after the Ontario-based drug company announced its intention to reduce its debt by more than $2-billion under a proposed recapitalization transaction.

Concordia had traded above $100 for a time in mid-2015 before its fall. Its shares were down 46 cents or about 40 per cent at 72 cents after the announcement.

The speciality drug company is making the move under the Canada Business Corporations Act which it noted is not a bankruptcy or insolvency statute.

But Concordia says several payments to unsecured lenders will not be paid and its proposal may result in a sizable dilution of its shares, though the extent was not known at this time.

Concordia says its management will continue to lead day-to-day operations through the process and operate its business.