AUSTIN (KXAN) – The company that runs the toll portion State Highway 130, a road that allows drivers to bypass Austin congestion, is close to defaulting on its debt, the Texas Tribune reports.
The Texas Tribune cites a Moody’s Investors Service report which found the SH 130 Concession Company owes more than $1 billion and does not have the money to make a June 30 dept payment.
According to the article, the SH 130 Concession Co. is working with lenders to waive part of the June 30 debt payment and working on restructuring its debt based on current revenue models.
The Moody’s report indicated 2013 revenue was 60 percent less than forecast and that this year’s revenue could be up to 70 percent off the forecast mark, the Texas Tribune reports.
“Moody’s routinely assesses SH 130 Concession Company, LLC as part of our financing requirements,” a spokesperson for the SH 130 Concession Company said “The June 13th opinion, which maintained SH 130 Concession Company’s previous rating, is part of that routine assessment. We remain confident that this first-class roadway will play an increasingly important role in relieving congestion along the gridlocked I-35 corridor as Central Texas continues to grow.”
This privately-owned section of SH 130, officially called SH 130 Segments 5 and 6, boasts the fastest speed limit in the nation at 85 miles per hour. It stretches 41 miles through rural Travis, Caldwell and Guadalupe Counties all the way to Seguin.
Anticipation of the toll road mounted since developers reached a deal seven years ago. Then construction began in 2009. The first drivers hit the pavement October 2012.