Overview
- S&P Global Ratings said the toll-road concession is in default after it failed to meet about US$500 million in obligations and cut the rating to D, noting the company covered only a small share of what it owed.
- Bondholders triggered an acceleration of payments and drew about S/110 million from the project’s trust, which S&P cited as part of the default event.
- Cash generation collapsed after a court ordered tolls suspended during a dispute with the city, and the company later halted operations, entered liquidation, and saw the contract terminated by the municipality.
- Clause 17.6 of the concession and a December municipal opinion state that, after termination, permitted lenders can seek the unpaid balance and the city replaces the operator for obligations tied to the guaranteed debt.
- About S/203 million held by pension funds is now at risk, and the legal overhang includes two U.S. arbitration awards ordering roughly US$200 million to the operator that remain unpaid and an investor-state case at ICSID reported near US$2.7 billion.