SH 130 Concession announces emergence from Chapter 11 bankruptcy case

By Caroline Salls

Pittsburgh, June 28 – SH 130 Concession Co. said in a news release Wednesday that it emerged from Chapter 11 protection with new ownership, new senior management and $260 million in new financing.

As previously reported, SH 130’s second amended plan of reorganization was confirmed on May 18 by the U.S. Bankruptcy Court for the Western District of Texas.

Under the plan, SH 130 will assume a concession agreement with the Texas Department of Transportation, a toll road lease and all other agreements with the department related to operation of the company’s toll road under the current terms of those agreements.

Creditor treatment will include:

• Payment in full, in cash, of administrative and priority claims;

• Holders of other secured claims will either have their claims reinstated, be paid in full in cash or receive the collateral securing the claim;

• Holders of priority lenders claims will receive exit facility cash proceeds equal to the amount of their claims;

• Holders of senior secured claims will receive a share of the exit facility remaining after payment of priority lender claims, 100% of new payment-in-kind loans and 100% of the new equity interests in reorganized SH 130;

• Holders of general unsecured trade claims will either be paid in full in cash or have their claims reinstated; and

• Holders of other general unsecured claims and holders of equity interests will receive no distribution.

The company said in the release that the financial reorganization removed $1.4 billion in debt from its balance sheet and will significantly improve the liquidity of the business.

The new ownership group, which is led by funds managed by Strategic Value Partners, LLC or its affiliates, has hired Louis Berger Services to operate and maintain the roadway, the release said. Transportation industry veteran Andy Bailey has been named chief executive officer, effective immediately.

“SH 130 Concession Co. has emerged from the Chapter 11 process as a much stronger company,” Bailey said in the release.

“Our capital structure has been transformed, and the company’s new owners are committed to investing in the improvements, technology and people needed to enhance the driving experience for our existing customers and attract new drivers to the roadway.”

Mike Pillsbury now serves as the company’s chief operating officer and Harry Quarls as the new chairman of the company’s board of directors.

New board members include Deirdre Delisi, Jordi Graells, Daniel Han and Keith Min.

SH 130 is a Buda, Texas-based highway operator. The company filed bankruptcy on March 2, 2016 under Chapter 11 case number 16-10262.

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