INDIANAPOLIS | A top Hoosier lawmaker believes the state will suffer no harm if the operator of the Indiana Toll Road declares bankruptcy and sells its 75-year lease to run the highway after just eight years in business.
State Sen. Luke Kenley, R-Noblesville, chairman of the Senate Appropriations Committee, said Monday the 2006 General Assembly crafted appropriate safeguards, such as the state always maintaining ownership of the road and land, in case something like an operator bankruptcy came along.
"While I'm sorry that they're not having a good performance themselves, I think for the state of Indiana and for the consumers of Indiana we're fully protected in that situation," Kenley said.
According to a Wall Street Journal report, the Toll Road operator -- a consortium of Spain-based Cintra and Australia-based Macquarie Group Ltd. -- has agreed to restructure some $6 billion of debt in bankruptcy court and sell its right to manage and collect tolls on the 156-mile road to a new company.
Kenley said if a new operator takes over the Toll Road it will have to comply with the terms of the 2006 lease, including agreements on toll rates.
"It's going to be lengthy, lots of lawyers, maybe a little messy, but I think we're in a good position on that issue," he said.
Kenley also noted the lease entitles the state to reclaim the road -- without returning any of the $3.8 billion Indiana got for it -- if the operator fails to live up to certain conditions.
He said he doesn't know if Republican Gov. Mike Pence is looking into that, but chuckled at the possibility.
"That would be a good deal for us," he said. "Then we could put it up for auction again."