TOLL-ROAD operator ConnectEast yesterday came out fighting against the legal challenge launched by major shareholder construction giant Leighton Holdings, declaring the dispute will not result in a material pay-out.
In a claim filed with the Victorian Supreme Court this week, Leighton subsidiary Thiess John Holland argued it was misled over traffic numbers, which have fallen short of expectations since the road opened last year.
Critically, the traffic forecasts underpinned Thiess John Holland's negotiations for a bonus payment for early completion of the $2.5 billion project.
ConnectEast, which operates the 39-kilometre EastLink toll road in Melbourne's east, has set aside $40.5 million to cover a payment due to Thiess John Holland for early completion of the toll road.
''ConnectEast will vigorously defend [Thiess John Holland's] claims,'' the company said in a statement yesterday.
''ConnectEast's assessment continues to be that the claims will not result in material liability for ConnectEast.'' While Thiess John Holland's statement of claim does not specify an amount of damages, it is believed the construction giant is seeking more than $400 million. It is believed this relates to the missed bonus payment and additional costs incurred as construction for the toll road accelerated.
However, sources close to ConnectEast dismissed the $400 million claim as ''wildly ambit'', with a bonus payment closer to $75 million under original traffic forecast figures.
In its statement of claim, Thiess John Holland argued ConnectEast continued to support its initial traffic forecasts from the opening of the toll road until about the middle of June this year, then revised forecasts down last month. The writ was lodged with the Victorian Supreme Court after Thiess John Holland opted not to take up its entitlements in the toll-road operator's recent $421 million capital-raising.
ConnectEast units yesterday closed 5.4 per cent lower at 35¢.
