OHL files for insolvency of Madrid M-12 toll road

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OHL files for insolvency of Madrid M-12 toll road OHL Concesiones has adopted the agreement to judicially file for insolvency for its two subsidiaries that manage the M-12 airport link toll road in Spain's, Madrid. Aeropistas S.L. and Autopista Eje Aeropuerto Concesionaria Española , S.A. (a 100% subsidiary of Aeropistas S.L.) are the mentioned entities.

Both entities are special purpose project companies, whose bank debt with several financial institutions is non-recourse project financial debt, with recourse only to themselves. The assets of both companies are essentially constituted by the shares of Eje Aeropuerto in the first case, and by the administrative concession for the construction, maintenance and operation of the airport toll road axis (M-12).

Aeropistas' outstanding bank debt on this date, amounts to €222.1 million, and the total liabilities (within the insolvency proceedings) of both companies (including only for information purposes, contingent liabilities) is €120.6 million for Eje Aeropuerto and €437.1 million for Aeropistas.

The valuation of both companies in the OHL Group's consolidated accounts amounts to €89.7 million, representing approximately 0.65% of the Group's consolidated assets.

Eje Aeopuerto's filing for insolvency is motivated by the increased construction and expropriation costs (substantially higher than were initially projected) and the highways' extremely low traffic. Therefore the company believes that it will not have the necessary resources to meet on its own its expropriation obligations, whose payment will be claimed soon. Therefore Aeropistas will not be able to meet its soon maturing financial obligations, given that their only source of income is Eje Aeropuerto who obviously is not capable of transferring the necessary resources to its parent company.

The filing for insolvency of these companies does not give rise to any acceleration or early termination right in any of OHL's relevant financial obligations.

The M-12 toll road (Eje Aeropuerto) is a high capacity freeway providing fast, secure and direct access to the T4 Terminal at Barajas International Airport. The toll road is 9.4 km long, two of which consist of a tunnel under the Juan Carlos I Business Park, recognized as the safest in Europe by EuroTAP 2007.

This toll road connects two important access roads in and out of the Spanish capital, the A-1 and A-2 freeways, at the junction with the M-40 beltway, and also provides a connection between northern and southern Madrid.

The project had an investment of €445 million.

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