new-buyers-bail-out-failed-crosscity-tunnel

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 back in full, while the original equity investors, including Li Ka-ShingÆs Cheung Kong Infrastructure CKI, will receive ôa significant returnö. One estimate puts this return at between 10 cents and 20 cents for every...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222