The Source - June 26, 2014
Fri June 27, 2014
The Source: State Highway 130 Unable To Pay Debts, Looks To Restructure
The woes of State Highway 130 continue as the privately managed toll road fails to meet revenue projections. Last year SH 130 Concession Company, which manages the southern 41 miles of the road near us here in san Antonio, had its credit rating dropped to junk levels.
Monday the company has a loan payment due for the private loan it took out to build the 1.4 billion dollar, 41-mile-long stretch of highway. But the cash-strapped business doesn't have the money and will have to restructure its debt in order to service future payments.
Why aren't we driving on SH 130? And what happens if revenues don't improve. The company doesn't actually own the road it built, the state does, so what happens if bankruptcy, which no one is talking about yet, were to occur?
- Vianna Davila, transportation reporter for the San Antonio Express-News