New buyers bail out failed Cross-City Tunnel

ABN AMRO and Leighton Holdings win the bid to buy SydneyÆs troubled Cross-City Tunnel, returning some money to the original equity investors including CKI.

Receivers KordaMentha in Sydney have sold the troubled Cross-City Tunnel asset to a consortium headed by ABN AMRO and Leighton Holdings for A$700 million $590 million. The sale ends a lengthy battle with creditors after the tunnel, which cost A$1 billion to build, went into receivership at the end of last year with debts of about A$560 million.

KordaMentha says the 16 banks that were involved in the funding of the original project will receive their money...

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