Pence: 'Business as Usual' on Toll RoadPosted: Updated:
Indiana Governor Mike Pence says drivers can expect "business as usual" as the private operator of the Indiana Toll Road moves through a bankruptcy process. The Indiana Finance Authority says any new operator must live up to Indiana Toll Road Concession Co. LLC's 2006 agreement and cannot "under any circumstance" increase tolls beyond the terms of that contract.
September 22, 2014
Indianapolis, Ind. -- The Indiana Finance Authority today issued the following statement regarding the bankruptcy filing by the ITR Concession Company LLC to restructure its debt obligations to a lender group associated with the 2006 Indiana Toll Road concession and lease agreement.
"The IFA has been aware of negotiations between the operator and its lenders, so we anticipated this could be a possibility," said Gov. Mike Pence. "But Hoosiers can expect business as usual on the Indiana Toll Road."
IFA Director Kendra York said ITRCC will continue to manage the toll road throughout the bankruptcy process, per the current agreement. ITRCC's prepackaged chapter 11 plan proposes to solicit interest from potential new operators. Any potential change in the toll road's operation must be pre-approved by the IFA. Also, any new toll-road operator must adhere strictly to the performance standards established in the original agreement that ITRCC entered into in 2006, and cannot "under any circumstance" increase tolls beyond what is set forth in the agreement.
"Contingencies to address situations like this were written into the 2006 agreement," said York. "So, day-to-day operations will continue as they have been on this important Indiana roadway, and we’ll continue to monitor the bankruptcy process on behalf of Hoosier taxpayers."
Indiana signed an agreement in 2006 with the ITRCC to operate the toll road for 75 years. The state received $3.8 billion dollars in the deal, and the operator has made a number of crucial investments in and updates to the toll road that have improved travel for passenger and commercial traffic. The State of Indiana has invested the payment in 87 Major Moves projects throughout the state.
York said IFA will continue to keep the governor apprised throughout ITRCC's bankruptcy process.
Source: Indiana Finance Authority