Texas

TexasTowelie

(112,124 posts) Thu Jun 19, 2014, 06:40 PM Jun 2014

SH 130 (Alternate Route to I-35) Toll Road Company in Danger of Default

The company behind a privately operated Texas toll road that sports the country’s fastest speed limit is dangerously close to defaulting on its debt, according to a credit rating agency.

According to a report released this week by Moody’s Investors Service, the SH 130 Concession Company, which operates the 41-mile southern portion of State Highway 130, is low on cash and scrambling to get an upcoming payment deadline waived,

The private consortium behind the project owes more than $1 billion and lacks the funding to pay off an upcoming debt payment due on June 30, according to the report. The report adds that the company has “depleted all but $3.3 million of available liquidity reserves.”

In an emailed statement, SH 130 Concession Company spokeswoman Megan Compton did not dispute any of the findings in the Moody's report.

More at http://www.texastribune.org/2014/06/19/report-sh-130-toll-road-danger-default/ .

9 replies

= new reply since forum marked as read

Highlight:

SH 130 (Alternate Route to I-35) Toll Road Company in Danger of Default (Original Post) TexasTowelie Jun 2014 OP

See how much better the private sector does when operating in the public square! Trajan Jun 2014 #1

If they default, who repoe's the road? HubertHeaver Jun 2014 #2

good question. northoftheborder Jun 2014 #3

The northern segments (#1-#4) of the road are owned by the state. TexasTowelie Jun 2014 #5

That will be interesting litigation. HubertHeaver Jun 2014 #7

The road is owned by the state of Texas... PoliticAverse Jun 2014 #4

Thanks for the answer and the link. HubertHeaver Jun 2014 #6

I'm surprised Perry didn't sell it to China. nt Ilsa Jun 2014 #8

give it time. it will be his parting "gift" to the us citizens of Texas. nt Javaman Jun 2014 #9

Trajan

(19,089 posts)

1. See how much better the private sector does when operating in the public square!

Reply to TexasTowelie (Original post)

Thu Jun 19, 2014, 06:51 PM

Jun 2014

Um ... wait ... wut? ....

HubertHeaver

(2,522 posts)

2. If they default, who repoe's the road?

Reply to TexasTowelie (Original post)

Thu Jun 19, 2014, 06:56 PM

Jun 2014

Does the Great State of Texas assume ownership and responsibility or do they merely close it?

northoftheborder

(7,572 posts)

3. good question.

Reply to HubertHeaver (Reply #2)

Thu Jun 19, 2014, 07:06 PM

Jun 2014

it's a great bypass of the terribly congested Austin/Roundrock permanent jam on I-35. Hope it doesn't close.

TexasTowelie

(112,124 posts)

5. The northern segments (#1-#4) of the road are owned by the state.

Reply to northoftheborder (Reply #3)

Thu Jun 19, 2014, 09:07 PM

Jun 2014

It is the two southern segments beginning near Seguin that are part of a partnership with the state. The investors in the concession company that risked building the road will be the ones taking the financial hit on their gamble. I think that the state would keep the road open, but because of the litigation it probably would mean that the road would not be maintained. In theory it could jeopardize the state's bond rating.