SPARRING infrastructure partners ConnectEast and Leighton Holdings have agreed to push ahead with mediation as part of a last-ditch effort to settle a high-stakes dispute over a bonus payment.
Leighton unit Thiess John Holland is seeking more than $400 million in damages, which it is claiming for the bonus for early completion of ConnectEast's recently opened EastLink tollway.
Following the start of court proceedings last week, the Victorian Supreme Court has agreed to adjourn the case until late next month to enable the two to continue talks on a possible settlement.
A ConnectEast spokesman said only that mediation talks were continuing.
The dispute centres on ConnectEast's traffic forecasts, which have fallen short of expectations since the road opened last year.
The traffic forecasts underpinned Thiess' negotiations for a bonus payment for early completion of the $2.5 billion project.
ConnectEast, which operates the 39-kilometre toll road in Melbourne's east, has said it will vigorously defend the action.
The toll-road operator has previously described Thiess' claim as ambit and has set aside $40.5 million to cover a payment due to Thiess John Holland for early completion.
Mediation talks follow ConnectEast yesterday issuing more than 1.27 billion units to investors after closing off a $421 million capital raising.
The funds are aimed at helping ConnectEast reduce its hefty debt ahead of a looming deadline of November next year.
The latest raising follows the company asking shareholders for $450 million last December to bolster the balance sheet.
Macquarie Group, which underwrote the offer, received $9.5 million for overseeing the raising.
The new shares will not qualify for ConnectEast's 1¢-per-unit distribution for the second half.
Leighton's Thiess unit, which has an 8.2 per cent stake in ConnectEast, opted not to take up its entitlements in the toll-road operator's recent capital raising.
