SH 130 Concession Company Completes Restructuring Under New Leadership
MUSTANG RIDGE, TX SH 130 Concession Company, the private entity that operates and maintains the 41-mile southern section of State Highway 130, has emerged from Chapter 11 protection with new ownership, new senior management and $260 million in new financing.
The financial reorganization has removed $1.4 billion in debt from the balance sheet of SH 130 Concession Company and will significantly improve the liquidity of the business.
The new ownership group led by funds managed by Strategic Value Partners, LLC or its affiliates ("˜SVPGlobal'), a leading global investment firm has hired Louis Berger Services to operate and maintain the roadway. Transportation industry veteran Andy Bailey has been named Chief Executive Officer of the concession, effective immediately.
"SH 130 Concession Company has emerged from the Chapter 11 process as a much stronger company," Bailey said. "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."
Bailey spent 25 years with the Virginia Department of Transportation before retiring as Deputy Commissioner, the highest career level position in the department, in 2002. As Deputy Commissioner, he was responsible for highway design, construction, maintenance and operations for the third largest state transportation system in the United States. He went on to oversee major infrastructure rebuilding projects in Iraq for the U.S. Department of Defense and later for Louis Berger in Afghanistan and Sudan.
Mike Pillsbury now serves as the company's Chief Operating Officer, bringing to the job more than 40 years of experience in construction and engineering management in both the public and private sectors.
Harry Quarls, an experienced Texas-based infrastructure executive, will serve as the new chairman of the company's Board of Directors joined by new board members Deirdre Delisi, Jordi Graells, Daniel Han and Keith Min.
"SH 130 is a beautiful roadway that offers the fastest speed limit in the nation while also remaining incredibly safe," Quarls said. "Our company is now positioned with the resources to succeed over the long-term."
More than 7.68 million toll transactions were completed along the southern section of SH 130 in 2016, an 11 percent increase compared to 2015. Truck traffic increased by 15 percent in the period.