OHL subsidiaries in liquidation

Spanish developer OHL has confirmed the liquidation of two wholly owned subsidiaries running the M-12 toll road in Madrid.

The Madrid mercantile court has issued the order to dissolve Aeropistas and Eje Aeropuerto (M-12), both subsidiaries of OHL, in dismiss the request of insolvency of the units.

The state will have a legal obligation to resolve the concession contract. However, in January 2014 the government issued a law to avoid the state paying the debts of bankrupt toll roads.

The M-12, which allows a rapid connection with Barajas airport, was awarded to OHL in 2002 to build, maintain and operate the route under a 25-year concession. However, in November 2013 the highway was declared bankrupt following increased construction and expropriation costs and the highway’s extremely low traffic. In that time, Aeropistas had a bank debt of €222.1m and together with Eje Aeropurto a total debt of €557.7m.