Bankruptcy approved for Indiana toll road

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Bankruptcy approved for Indiana toll road

The reorganization plan of the operator of the Indiana Toll Road (ITR Concession Company) has been approved by a federal bankruptcy judge in Chicago.

ITR Concession declared bankruptcy last month on debt of more than $6 billion.

U.S. Bankruptcy Judge Pamela Hollis approved the reorganization plan presented by ITR Concession Company on Oct. 28. The plan will lease up for bid.

ITR has already been granted approval for a Chapter 11 bankruptcy, which has the support of nearly all of its senior secured lenders.

According to sources, if ITR Concession doesn't find a buyer, the plan calls for it to issue $2.75 billion in new loans to its senior creditors or obtain new financing and use proceeds to pay back lenders.

According to sources, Canada Pension Plan Investment Board (CPPIB) has joined Ferrovial's toll road operator Cintra and Canadian investment manager Brookfield Asset Management to bid for the asset.

Australia's Hastings Funds Management has teamed up with the California Public Employees' Retirement System (Calpers) and Italian toll road operator Autostrade Meridionali SpA.

Spanish infrastructure operator Abertis Infraestructuras SA has teamed up with Borealis, the infrastructure investment arm of the Ontario Municipal Employees Retirement System.

Australian infrastructure fund manager IFM Investors is also leading its own consortium, according to these sources.

Other companies known to be interested in the asset are Alberta Investment Management Corporation (AIMCo)and Abu Dhabi Investment Authority (ADIA).

The State of Indiana leased the Indiana Toll Road to Spain's Cintra and Australia's Macquarie Group Ltd. for $3.8 billion in 2006. Macquarie Infrastructure Partners owns 25% of the project, Macquarie Atlas Roads controls 25% and Cintra, the road's operator, holds 50%.  The contract has a period of 75 years.

The Indiana Toll Road, officially the Indiana East-West Toll Road, runs for 251.51 km east-west across northern Indiana from the Illinois state line to the Ohio state line.

List of country news

Country news

  • November 06, 2014

    Ares Management, L.P. To Purchase Energy Investors Funds (EIF)

    A subsidiary of Ares Management, L.P. has signed an agreement to acquire Energy Investors Funds (EIF), an asset manager in the energy infrastructure industry with about US$4 billion of assets under management (AUM) across EIF's four commingled funds and related co-investment vehicles. Read more
  • November 07, 2014

    Local group seeks to halt Cintra's I-77 P3 project

    A local group of citizens is pressing to halt the development of the I-77 highway P3 project in North Carolina (USA). Read more
  • November 10, 2014

    Meridiam North America appoints Thilo Tecklenburg as Chief Operating Officer

    Meridiam, an infrastructure investor specializing in public and community infrastructure, announced last week that Thilo Tecklenburg has been named Chief Operating Officer for North America. Read more
  • November 11, 2014

    CDOT selects Freshfields/Kaplan Kirsch Rockwell team as legal advisor

    The Colorado High Performance Transportation Enterprise (HPTE), a division of the Colorado Department of Transportation (CDOT), has selected Freshfields and Kaplan Kirsch Rockwell as legal advisers for the Interstate 70 East PPP project. Read more
  • November 11, 2014

    GDOT launches RFQ for DBF project

    The project consists of the construction of barrier-separated collector-distributor (CD) lanes along I-285 and SR 400, the reconstruction of existing ramps, new flyover bridges, as well as the reconstruction and widening of several existing bridges in the interchange area. Along SR 400about two miles of improvements will also be constructed. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.