Judge OKs Toll Road Bankruptcy
October 29, 2014 — Eric Berman, Network Indiana — The company which operates the Indiana Toll Road has exited Chapter 11, but will continue to look for a buyer for the lease.
Chicago bankruptcy judge Pamela Hollis gave final approval to ITR Concession Company‘s prepackaged bankruptcy. The reorganization gives the company 10 months to find a buyer. The Spanish-Australian consortium is eight years into a 75-year lease of the road.
The company would restructure its debt or line up new financing if it can‘t sell the lease.
South Bend Democrat David Niezgodski‘s House district includes a stretch of the road. He says he‘s relieved a bankruptcy judge didn‘t tinker with the terms of the state‘s lease, but he‘s still concerned about the condition of the road.
In a letter to U-S Senator Joe Donnelly last week, the Indiana Finance Authority, which oversees the lease, said the road itself is being adequately maintained, but echoed concerns about deterioriating and unsanitary conditions at the travel plazas along the road. ITR plans to hire a new contractor to renovate the plazas.
The IFA says in a statement the state will “remain fully engaged” as ITR searches for a buyer. Director Kendra York notes the state has the right to approve any new operator.