Failure takes toll on board
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.
Frequently Asked Questions about this Article…
The board, including chairman Trevor Rowe, resigned days after appointing McGrathNicol as voluntary administrators. The article says the departures have no impact on the administration process but suggest the directors are unlikely to propose a rescue package and that BrisConnections may be heading for liquidation.
No. According to the article, the directors' departure has no impact on the administration process. McGrathNicol remains the appointed voluntary administrator for BrisConnections and seven associated companies.
McGrathNicol was appointed as voluntary administrators to BrisConnections and seven associated companies. A banking syndicate owed $3.5 billion appointed PPB Advisory as receivers. The article also notes PPB had been advising BrisConnections since November on its business and capital structure.
Yes. Administrator John Cronin of McGrathNicol said the AirportlinkM7 toll road would continue to operate as usual while the administration proceeds.
The article states that the first creditors' meeting has been scheduled for Friday morning in Brisbane. This meeting is a formal step in the administration process and is being used to progress the administrators' work.
The article suggests the board's resignation points toward a bleak outcome — possibly liquidation — and reminds investors that the toll road project has struggled to deliver expected returns because traffic was about half of forecasts. That combination implies very limited prospects for shareholders, though specifics will depend on the administrators' and receivers' next steps.
BrisConnections began as a heavily geared public–private partnership in 2008. Since completion the toll road has struggled to produce expected returns because traffic was around half of what had been forecast. The project was also nearly wound up in 2009 after issues caused by a rogue shareholder.
Two directors, Andrea Harcourt and Richard Wharton, resigned last November. The most recent departures included John Allpass, Martin Kriewaldt, Mark Lynch and Raymond Wilson. The company statement said Raymond Wilson would remain as chief executive and company secretary despite changes to the board.
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