From the outset the Airport Rail Link did not meet its patronage forecast. In November 2000 ALC defaulted on senior debt payments to the National Australia Bank (NAB) and NAB appointed receivers and managers on 30 November 2000. In accordance with the contractual terms, ALC made performance claims under the Original Stations Agreement of approximately $10 million per quarter plus interest. In addition, ALC served a number of default notices on SRA commencing the termination process under the Original Stations Agreement. The Receiver pursued the original claims and default notices and issued further claims and default notices on a regular basis.72In the end, all parties incurred a financial loss. The contract was eventually renegotiated, including new KPIs which triggered payments or credits for KPI performance rather than contract default.
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