Winners and Hoosiers

30 September 2014 By Kevin Allison

Private investors in a 157-mile Indiana toll road are set to be wiped out in bankruptcy court – but only after they sunk millions into new lanes and tolling technology. It’s a rare example of a boom-era deal successfully transferring risk from the public to the private sector.

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ITR Concession, the privately funded operator of a 157-mile stretch of Indiana tollway, filed for bankruptcy on Sept. 21, citing weaker-than-expected traffic.

ITR is owned by units of Macquarie, the Australian bank, and Cintra, a unit of Spanish infrastructure group Ferrovial. The partners paid $3.8 billion in 2006 for the right to operate the stretch of highway from Chicago to the Ohio border. The bid was $1 billion more than the next-closest offer, and was financed with over 80 percent debt.

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