Macquarie’s M6 Toll Road Seeks Court Backing for Loan ExtensionJulie Miecamp
Macquarie Motorways Group, owner of the U.K.’s M6 Toll road, is seeking help from a London court to extend about 1 billion pounds ($1.6 billion) of loans.
The company wants to push back the maturity of its debt to June 2020 from 2015 and creditors are due to vote on the proposal on Dec. 6, according to an e-mailed statement from a company representative. The deal is part of a U.K. legal process known as a “scheme of arrangement,” which typically requires the backing of 75 percent of creditors.
The owner of the 27 mile (43 kilometer) highway is seeking the debt changes as high fuel prices and the weak U.K. economy affect traffic volume, according to a Sept. 27 company filing. Staffordshire, England-based Macquarie Motorways Group warned that without the debt changes it may breach its loan terms at the end of the year, it said in the filing. A majority of its secured creditors back the extension proposal.
“The refinancing will provide the M6 Toll road with a sustainable capital structure for the medium term and a firm platform for future investment in the road,” the company representative said.
The M6 Toll opened to traffic in December 2003 and cost about 900 million pounds to build, according to the website of the road operator.