TT-Line could have faced insolvency without emergency borrowing arrangements approved during the election caretaker period, Tasmania’s lending authority has revealed.
TASCORP chair Gary Swain told a parliamentary committee the ferry operator’s financial position was “not sustainable” when it requested an extra $410 million in borrowing capacity in April.
The Tasmanian Public Finance Corporation approved a temporary increase to TT-Line’s borrowing limit from $1.035 billion to $1.445 billion in June, but only until October 2026.
TT-Line has already used $988 million of the original amount.
“The board was concerned that the assumptions in the base case were somewhat optimistic and that if some stress events occurred, the…