SH 130 Chapter 11 Filing

SH 130 Concession Company, LLC, the private entity that designed, built, operates and maintains the southern sections of the SH 130 toll road, has filed for Chapter 11 protection in the Western District of Texas.

The filing will have no financial impact on the state of Texas, which owns the 41-mile southern sections of the SH 130 facility and leases the right to operate and maintain it through the Facility Concession Agreement with SH 130 Concession Co.

BUSINESS AS USUAL: NO IMPACT ON OPERATIONS

SH 130 Concession Co. will continue to operate its business as usual and serve its customers on an uninterrupted basis as it moves forward with this process. SH 130 customers, employees, vendors and the communities that we serve will not be impacted.

Specifically, SH 130 expects to continue to:

  • Operate the road without any disruption
  • Provide wages and benefits for employees as usual
  • Maintain excellent customer service
  • Make payment to vendors and suppliers without interruption
  • Continue work on current and planned future capital improvement projects

NO IMPACT ON THE STATE OF TEXAS

The state of Texas did not contribute any money to build SH 130 Segments 5 & 6, and the state is not responsible under any circumstances for repaying the project’s debt.

The Facility Concession Agreement between TxDOT and SH 130 Concession Co. remains in place to protect the public interest, and SH 130 Concession Co. will continue to meet all operations and maintenance requirements.

Press Releases

August 12, 2016 – SH 130 Concession Co. Statement on Proposed Reorganization

March 2, 2016 – SH 130 Files for Chapter 11

 

Q & A

What is happening?
How does the filing impact the state of Texas and its taxpayers?
What does this mean for drivers?
Who owns SH 130 segments 5 & 6?
Will tolls increase?
Will maintenance be delayed?
Why did SH 130 Concession Co. file for Chapter 11?

What is happening?

SH 130 Concession Co., the private entity that designed, built, operates and maintains the southern sections of the SH 130 toll road, filed for Chapter 11 protection in the Western District of Texas.

How does the filing impact the state of Texas and its taxpayers?

This filing will have no financial impact on the state of Texas. Texas did not contribute any money to finance construction of the facility, and the state is not liable for any of the project’s debt.

The state has already received $142.6 million in concession payments from SH 130 Concession Co. — money that has been used to fund infrastructure improvements on other Texas roadways.

What does this mean for drivers?

This filing will have no impact on Central Texas drivers. SH 130 Concession Co. will continue to operate and maintain the road as usual during these proceedings.

Who owns SH 130 segments 5 & 6?

SH 130 segments 5 and 6 are owned by the state of Texas and leased to SH 130 Concession Co. through the Facility Concession Agreement. This agreement will remain in place to protect the public interest during the proceedings.

Will tolls increase?

No changes will be made to tolling rates or the current toll schedule. Any future toll increases remain subject to existing restrictions in the Facility Concession Agreement.

Will maintenance be delayed?

No. SH 130 will continue to make all necessary repairs as needs arise. Roadway quality will not be impacted.

Why did SH 130 Concession Co. file for Chapter 11?

Traffic on the facility has been lower than expected. As a result the current debt repayment schedule between SH 130 Concession Company and our lenders is unsustainable.

SH 130 Concession Co. filed for Chapter 11 protection in order to allow the company to continue discussions with its lenders and implement a financial restructuring of its outstanding debt.

Prior to the filing, SH 130 Concession Company had productive discussions with its lenders regarding a global restructuring of its debts and the company continues those discussions. We’ve been working with our lenders to improve the capital structure of the project for almost two years.

SH 130 Concession Co. hopes to be able to announce a global resolution in the coming months.