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The operator of Queensland’s Clem Jones Tunnel, RiverCity Motorway Group (ASX:RCY) collapsed owing $1.3 billion.
RiverCity fell into a trading halt yesterday afternoon and is expected to release a statement this morning confirming its lenders have failed to approve a standstill agreement that would have rescued the company.
The Clem Jones tunnel is Queensland’s second largest toll road project.
RiverCity’s initial forecasts for 60,000 vehicles a day was found to be excessively optimistic, with traffic volumes closer to 20,000.
RiverCity booked a net loss of $1.672 billion for the year ended June 30, 2010.
