American Roads, LLC recently filed a Chapter 11 Bankruptcy in the Southern District of New York. This filing, however, could have an impact on Alabama residents. American Roads owns and operates four toll bridges in Alabama. These bridges include the Foley Beach Expressway, the Montgomery Express in Millbrook, the Tuscaloosa Bypass and the Emerald Mountain Expressway in Wetumpka. The company also owns and operates a fifth facility located in Detroit, Michigan, the Detroit-Windsor Tunnel. Interestingly, they are a Detroit based company and their chapter 11 filing was dated about a week after the city of Detroit’s recent Chapter 9 bankruptcy filing.
Although the company has reported that the bankruptcy filing should not affect bridge operation nor increase toll costs, they have cited traffic revenue declines from toll operations as part of what led to their bankruptcy filing to include the current economic recession. These declines were noted mostly to be in Alabama and it is speculated that high gas prices, reduced travel and consequences of gulf disasters to include tornadoes, hurricanes and the BP Deepwater Horizon oil spill have added to the problem. The company further cited a decline in the population in the city of Detroit as part of the problem.
By filing Chapter 11 Bankruptcy, American Roads, LLC, which is owned by Alinda North American Roads, Inc., is seeking protection from its creditors while trying to reorganize the business. The bankruptcy filing lists about $830 million in debt and also shows about $100 million is company assets with the largest creditor being the Bank of New York Mellon where they owe about $496 million. The company projects the Chapter 11 process to be complete in about three months.
If you, like the bridge company, feel that you need protection from your creditors, please contact our office nearest you and schedule a free consultation to privately discuss your bankruptcy options with one of our experienced attorneys.