Trading in ConnectEast shares frozen as toll road fails to fire
The Age: Trading in ConnectEast shares frozen as toll road fails to fire (21 November, 2008)
Far fewer drivers are using EastLink than predicted, forcing operator ConnectEast to freeze trading in its shares while it raises money to cover its $1.9 billion debt. Fewer than 150,000 trips a day are being made on the road. When it offered shares in the toll road in 2004, ConnectEast predicted it would have 225,000 trips a day by this stage.
Industry analysts say the road must generate at least 156,000 trips a day to cover an interest bill of about $15 million a month. But despite the road’s poorer-than-expected performance – CitiGroup last month described ConnectEast as “a looming default risk” – it is the third-busiest route in Victoria. Continue Reading…