Indiana Toll Road Operator Files For Bankruptcy
September 22, 2014 — Just eight years into its deal with the State of Indiana, The Indiana Toll Road Concession Company says it doesn’t have the resources to pay off roughly six billion dollars in debt. The company filed for Chapter 11 Bankruptcy late Sunday. Indiana Public Broadcasting’s Barbara Harrington explains what that could mean for the future of the Toll Road.
The Associated Press — State officials say they expect no changes in daily operations of the Indiana Toll Road with the bankruptcy filing of the highway’s debt-ridden private operator.
Chicago-based ITR Concession Co. submitted its federal bankruptcy court filing, saying it failed to make a $102 million interest payment that was due in June.
ITR’s debt stems from a 2006 deal under which its Spanish-Australian parent company paid state government $3.8 billion up front for a 75-year lease of the 157-mile tollway traversing northern Indiana. But ITR’s toll revenue hasn’t met expectations.
The company said last week it would try to sell the highway lease to pay off the debt.
Gov. Mike Pence says in a statement that “Hoosiers can expect business as usual” on the toll road.