Texas Toll Road Builder Operating SH 130 Files for Bankruptcy

by San Antonio Attorney

Texas toll road builder that runs State Highway 130 filed for Chapter 11 bankruptcy on March 2, 2016.

Company officials clarified that the maneuver will not affect the operations of the State Highway 130 or any public funds.

Robert Hinkle, Corporate Affairs Director for the North Texas-based developer Cintra, revealed that the filing is nothing more than a reorganization plan.  The move will not cause the closure of SH 130 or blow any public resources.

Hinkle added that the purpose of Cintra’s partnership with construction firms was to shore up finances to build the road.  This move prevents each entity from getting involved with each other’s financial situations.  The recent Chapter 11 filing will not affect any North Texas projects.

Cintra also serves as an investor in three companies to reconstruct LBJ Freeway, State Highway 183 and the Interstate 35W located in Fort Worth Texas.

SH 130 is a tolled highway whereas the other three North Texas projects possess managed toll lanes operating alongside rebuilt tax-funded lanes.  North Texas projects were partially funded by the state and SH 130 was more of a private project.

The situation of traffic towards 41-mile long road of SH 130 in Austin was less than expected even with the 85 mph speed limit of its corridor that was considered to be the highest in the nation.

Lower traffic statistics were the main cause as pointed out by the company officials since the road was open to public in the recession period.  Traffic in 2015 has increased by 15 percent compared to 2014.

Hinkle concluded that Cintra will expect a huge amount worth of toll revenues to pay off the debt and this will improve further with the reorganizational plan.

Hinkle said Cintra still expects toll revenues to eventually pay off the company’s debt, the firm just needs to restructure.

 

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