Purple Line parties ‘have month’ to save deal

The parties involved in Maryland’s Purple Line project have signed a forbearance agreement that will set aside issues of default until the end of October.

The move is designed to give parties breathing space to come to an agreement on the nearly $800m of cost overruns and thereby save the project from collapse.

Under the forbearance agreement, obtained by local press Maryland Matters, private partner Purple Line Transit Partners (PLTP), the sponsors and the US Bank National Association, agreed not to declare any default or event of default, or take any enforcement action, or take any actions to compromise or impair the collateral or rights of the second parties until after 30 October.

PLTP also agreed not to seek to access the remaining bond proceeds held in the construction account or to seek access to disburse the proceeds of any capital contributions from the sponsors.

PLTP’s workers downed tools on the project in September, after the Circuit Court of Baltimore City ruled that it could demobilize ahead of a final decision on the private partner’s right to terminate for extended delay.