Failure takes toll on board
THE entire board of directors at BrisConnections, including chairman Trevor Rowe, resigned on Monday, just days after appointing voluntary administrators.
Their departure has no impact on the administration process, but suggests the directors will not propose a rescue package and that BrisConnections is heading for liquidation.
Directors who resigned alongside Mr Rowe include John Allpass, Martin Kriewaldt, Mark Lynch and Raymond Wilson, who would remain as the chief executive and company secretary, according to a statement to the market.
Two other directors resigned last November - Andrea Harcourt and Richard Wharton.
The board of the troubled toll road operator appointed McGrathNicol as voluntary administrators to BrisConnections and seven associated companies. A banking syndicate owed $3.5 billion appointed PPB Advisory as receivers. PPB has been advising BrisConnections since November on its business and capital structure.
BrisConnections started as a public private partnership in 2008. The heavily geared project was nearly wound up by a rogue shareholder in 2009.
However, since completion the toll road has struggled to produce expected returns because traffic was half what was forecast.
Administrator John Cronin, of McGrathNicol, said the AirportlinkM7 toll road would continue to operate as usual. The first creditors meeting has been scheduled for Friday morning in Brisbane.