A trio of bankruptcies

In what is becoming a depressingly familiar occurrence, a third Spanish road – the AP36 Ocana-La Roda toll road, linking Toledo with Albacete – has filed for bankruptcy protection.

The concessionaire of the AP36 – Ferrovial (55 percent), Sacyr (40 percent) and Caja de Ahorros y Monte de Piedad de Gipuzkoa y San Sebastián (5 percent) – threw down the towel, citing much lower-than-expected traffic, Spain’s economic crisis, and increased competition from alternative roads, as the main reasons for the Chapter 11 proceedings.

It added that “a significant factor in this decision [to file for bankruptcy protection] was that the potential measures foreseen under [the] law to aid the concession were not effectively implemented by the contractor’s governing body”.

For Ferrovial and Sacyr, the AP36 is their second Spanish road to go bust. Last month, the partners filed for bankruptcy protection for the R4 Madrid-Ocana toll road, one of Madrid’s notoriously troubled ring roads, which was suffering from much higher-than-predicted land expropriation costs in addition to the problems that also affected the AP36.