Overview
- A Peruvian court ordered Rutas de Lima to immediately stop charging at the Villa and Punta Negra toll booths under threat of consecutive fines for noncompliance.
- The renewed order follows the company’s brief resumption of collections after it appealed an earlier suspension, arguing that an appeal stays enforcement.
- Brookfield is liquidating its Rutas de Lima subsidiary, leaving roughly S/1,500 million in local bonds exposed to a likely default, with S&P rating the debt at CC and calling a default nearly inevitable.
- Peru’s private pension funds hold most of the bonds, with Prima AFP identified as the largest buyer, and prices have fallen to about one third of face value according to reported market indications.
- Lima’s municipal government contends the tolls are illegitimate and is pursuing legal actions, while Brookfield continues a roughly US$2.7 billion international arbitration claim alleging unlawful expropriation.