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Monday, September 15, 2014

Ind. Gov't. - "Indiana Toll Road operator weighs bankruptcy, sale"

This story by Joseph S. Pete appeared in the NWI Times late Friday. It begins (ILB emphasis):

The Indiana Toll Road operators are looking at filing for bankruptcy to get out from under $6 billion in debt and selling the right to operate the road, according to media reports.

Citing anonymous sources, the Wall Street Journal reported the road's operators, Spain's Cintra and Australia's Macquarie Group Ltd., have reached an agreement with their largest creditors to restructure debt in bankruptcy court and to sell a new party the rights to operate the road under the remainder of a $3.8 billion, 75-year lease.

The Indiana Toll Road Concession Co. would file for Chapter 11 bankruptcy, which involves the reorganization of debt and not liquidation, sell the right to operate the road, and funnel most of the sales proceeds to secured creditors, which are mostly hedge funds.

Toll Road operations should not be affected by any deal, according to a source familiar with the situation. Any bankruptcy filing or change in management would not impact drivers, truckers, Toll Road employees or communities that 157-mile toll road cuts through. Indiana would continue to own the road, which is lease in a public-private partnership.

Paula Chirhart, a senior vice president at the investment bank Macquarie, declined to comment.

The NWI Times had an earlier toll road bankruptcy story on June 20th - the full story is still accessible from the NWI Times.

Posted by Marcia Oddi on September 15, 2014 08:32 AM
Posted to Indiana Government