The private company that operates the Indiana Toll Road filed for Chapter 11 Bankruptcy Sunday.
In its filing, the ITR Concession Company says it does not have the resources to pay its existing $6 billion in debt obligations. So, the company wants to sell its lease or restructure its business.
The State of Indiana leased the Indiana Toll Road to Cintra-Macquarie for $3.8 billion in 2006, as part of the "Major Moves" initiative led by former Governor Mitch Daniels. The money from the 75-year deal was invested in Major Moves projects throughout the state.
In August, the Indiana Finance Authority sent a letter to the debt-ridden ITRCC, giving them 90 days to prove they could meet their financial obligations.
"The IFA has been aware of negotiations between the operator and its lenders, so we anticipated this could be a possibility," Gov. Mike Pence said in a statement. "But, Hoosiers can expect business as usual on the Indiana Toll Road."
The IFA says the concession company will continue to manage the toll road during the bankruptcy process. If the ITRCC seeks a new operator, as outlined in its plan, it must first be approved by the IFA. Any new operator must follow the same rules agreed upon in 2006. That includes not raising tolls beyond what's outlined in the agreement.
"This is really a situation between the operator and the lender and will really have little, if any, impact on Hoosiers," said Toll Road Oversight Director Jim McGoff. "The $3.8 billion has been invested in more than 80 major moves projects throughout the state. So, any risk to Hoosiers has been greatly mitigated."
But, Sen. John Broden (D-South Bend) says that agreement was a bad deal. He's worried, amid their serious financial troubles, the company will not be able to maintain the road.
"I feel like this unfortunately has kind of gone the way many of us have feared, which is consumers are left with higher tolls, a worse product, limited control over the access," Broden said. "I don't have a lot of faith in the state's ability to enforce this agreement. And, so, I have great concerns. The money's been spent. And, now, for another 65 years, we're going to be stuck with a marginal company."
Broden says he'd like to see the state once again take over operation of the Indiana Toll Road.
