TOLL OPERATOR GOES INTO VOLUNTARY ADMINISTRATION
Written on the 19 February 2013
THE operator of Brisbane’s Airport Link toll road BrisConnections (BCS) has entered voluntary administration after traffic numbers failed to meet forecasts.
Lenders were not prepared to support proposals to restructure the company’s debt, and it had “exhausted the alternatives”, the company says in a release to the share market today.
BrisConnections announced its value might be less than its debt in November, following an analysis of traffic levels and operating costs.
A review of expenditure and subsequent strategies to reduce costs has not saved the company from administration, a decision which non-executive chairman Trevor Rowe says is “disappointing”.
Traffic levels have been less than expected in the seven months since the tunnel opened, despite a marketing campaign including free and discounted toll periods to attract motorists.
The tunnel, which links Brisbane’s airport with its CBD, will continue to operate as normal.
Jaime Harris, John Cronin, Jason Preston and Peter Anderson of McGrathNicol have been appointed as administrators.