Lane Cove Tunnel: Strategic restructuring and value realisation
The Connector Motorways Group, owner of Sydney’s Lane Cove Tunnel and Military Road E-Ramps, faced significant financial pressure as patronage fell well below forecast levels.
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RestructuringRelated Industries
Aviation & TransportThe Connector Motorways Group, owner of Sydney’s Lane Cove Tunnel and Military Road E-Ramps, faced significant financial pressure as patronage fell well below forecast levels.
This shortfall impacted the Group’s ability to meet interest payments to secured lenders, prompting the need for a strategic response.
How we helped
Our role
We were engaged by secured lenders to provide advisory support, including operational oversight, negotiating a standstill agreement, and exploring restructuring options.
During the two-year standstill period, we:
- Managed the assets to maintain operations
- Allowed time for traffic volumes to stabilise
- Completed vendor due diligence
- Planned and prepared for a structured sale process
- Updated enterprise value modelling to reflect revised operating assumptions
In January 2010, we were appointed Receivers and Managers of the Connector Motorways Group.
Our approach
We maintained a ‘business as usual’ operation while preparing for a strategic sale. Our team led an extensive sale process, engaging closely with stakeholders — including the Roads and Traffic Authority — to ensure a smooth transition.
In May 2010, the process concluded with the execution of an Asset Disposal Agreement with Transurban.
Outcomes acheived
- The tunnel and associated assets were sold for $630.5 million, exceeding lender expectations.
- The transaction was completed efficiently, with all project documents novated and stakeholder approvals secured.
- Our approach preserved asset value and delivered a successful outcome for all parties.
