The reorganization plan of the operator of the Indiana Toll Road (ITR Concession Company) has been approved by a federal bankruptcy judge in Chicago.
ITR Concession declared bankruptcy last month on debt of more than $6 billion.
U.S. Bankruptcy Judge Pamela Hollis approved the reorganization plan presented by ITR Concession Company on Oct. 28. The plan will lease up for bid.
ITR has already been granted approval for a Chapter 11 bankruptcy, which has the support of nearly all of its senior secured lenders.
According to sources, if ITR Concession doesn't find a buyer, the plan calls for it to issue $2.75 billion in new loans to its senior creditors or obtain new financing and use proceeds to pay back lenders.
Australia's Hastings Funds Management has teamed up with the California Public Employees' Retirement System (Calpers) and Italian toll road operator Autostrade Meridionali SpA.
Australian infrastructure fund manager IFM Investors is also leading its own consortium, according to these sources.
The State of Indiana leased the Indiana Toll Road to Spain's Cintra and Australia's Macquarie Group Ltd. for $3.8 billion in 2006. Macquarie Infrastructure Partners owns 25% of the project, Macquarie Atlas Roads controls 25% and Cintra, the road's operator, holds 50%. The contract has a period of 75 years.
The Indiana Toll Road, officially the Indiana East-West Toll Road, runs for 251.51 km east-west across northern Indiana from the Illinois state line to the Ohio state line.