Cintra defaulting?

[Armybrat]

This could have big repercussions on Austin's tollways:

http://www.star-telegram.com/2011/07...y-default.html

By Gordon Dickson

gdickson@star-telegram.com

Texas officials are watching with concern as reports surface about a possible default on a $3.8 billion Indiana toll road project being built by the developer that is financing major highway and toll projects in Dallas-Fort Worth, Austin and San Antonio.

Cintra, the Spain-based company that leads a team operating the Indiana Toll Road, has used up most of its rainy-day fun and is running out of money to pay debt. The shortfall is the result of lower traffic -- and lower toll revenue -- than originally forecast, according to financial news reports.

Cintra and its partners are also building the $2.1 billion North Tarrant Express, which involves the reconstruction of Loop 820 and Texas 121/183 in Northeast Tarrant County. Cintra is also the lead partner in the LBJ Express, which includes the expansion of Interstate 635 in Dallas.

The projects include both toll and free lanes.

The company is also lead partner in two segments of the Texas 130 toll road project between Austin and San Antonio.

Collectively, that's about $5 billion worth of road work in Texas, much of it financially structured similarly to the Indiana project -- using tolls to pay off debt over many years.



Read more: http://www.star-telegram.com/2011/07...#ixzz1SNsDrFBh