Receivers Sue Arup for $2 Billion After Brisbane Toll Road Fails

Arup, the London-based global engineering company, is being sued in Australia for $2bn by the receivers of a Brisbane toll road that failed because its traffic forecasts proved optimistic, the Financial Times reported. BrisConnections, the company that built a toll road linking Brisbane’s central business district with its airport — which was finished in 2012 — went into administration the following year with debts worth more than $3bn. PBD Advisory — BrisConnections’ receivers — are seeking $2bn in compensation for Arup’s traffic forecasting, which proved far off the mark: traffic on the road reached only about a quarter of what the UK group forecast. The dispute went into litigation after the company’s collapse, and moved into court in Sydney on Tuesday after the parties failed to reach a resolution behind closed doors. The litigation has ensnared Macquarie Group, one of the backers of the project’s initial public offering. The Australian investment bank faces a cross-claim brought by Arup that contends the bank shoulder a part of any award paid. Read more. (Subscription required.)