The firm that oversees a stretch of highway with the country’s fastest speed limit says it is on better financial footing and under new ownership.
The SH 130 Concession Company, which operates a 41-mile stretch of the State Highway 130 toll road north of Mustang Ridge, announced Wednesday that it has exited bankruptcy a year after filing for it, while removing over a billion dollars in debt and attracting $260 million in new financing.
“SH 130 Concession Company has emerged from the Chapter 11 process as a much stronger company,” Andy Bailey, the company’s new CEO, said in a release.
Brian Cassidy, an Austin-based lawyer for Locke Lord, one of many firms that helped SH 130 navigate its bankruptcy, noted that the company kept the highway open while it restructured its debt. The $260 million in new financing comes in the form of a loan, which represents the restructured company’s only current direct debt, according to company spokeswoman Kate Miller Morton.
“One of the criticisms that you hear periodically about public-private partnerships is that they somehow put the public at risk of having to cover private sector obligations,” Cassidy said. “The fact is, if the agreements are structured correctly — and this is an example of one that was — then that risk to the public sector doesn’t really exist.”
See here and here for the background. I’m certainly glad that this all happened without the taxpayers getting stuck with the check, but none of this makes SH 130 a better idea. There’s nothing in the story to indicate whether usage of the road has increased or not. I’m not surprised that some entity was willing to make a bet on this thing, but let’s be clear, that’s what it is. It may never have any better odds of making a profit.