Tollroad SH-130 Company Files For Bankruptcy
The company that runs the SH 130 toll road filed for Chapter 11 bankruptcy. The SH 130 Concession Co, an independent entity formed between Spain-based Cintra and Zachry American Infrastructure, has been troubled for at least two years, when it warned that it was in danger of defaulting on its loans.
In 2005, the State of Texas partnered with Cintra to develop the Trans-Texas Corridor, the largest toll road development in the US. The company came to an unprecedented deal with the state to build and operate its section of the road for 50 years in exchange for a portion of the toll revenue.
Cintra’s section of the road is a 41-mile stretch from Seguin to Austin, and boasts the fastest speed limit in the country at 85 mph. The first drivers hit the road in October 2012.
Traffic and revenue has not reached projected levels, however, and Cintra has taken the financial hit. Transportation authorities have said Cintra’s bankruptcy will have no effect on travelers who use the road or on taxpayers in Texas.
While Texas didn’t spend any money on that part of the toll road, the federal government invested $430M in the project. SH 130 Concession Co’s payments on that debt are scheduled to begin next year.
