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.

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.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles