Detroit-Windsor tunnel operator files for bankruptcy
By myFOXDetroit.com Staff
(Credit: WJBK|myFOXDetroit.com) Detroit Windsor tunnel
DETROIT, Mich. (WJBK) -
The city of Detroit is looking for bankruptcy protection and now so too is the company that runs the tunnel that connects the border between the U.S. and Canada.
American Roads LLC filed for Chapter 11 protection in New York City according to several reports.
American Roads, which is owned by Alinda Capital Partners LLC, is seeking to restructure $830 million in debt and blames a drop in traffic volumes for its inability to pay what is owed. Although the Detroit bankruptcy itself was not the main reason for the filing, the tunnel similarly had a heavy debt load, Neal Belitsky, American Roads' chief executive, said in court documents.
The Detroit-Windsor tunnel is jointly owned by the two cities and according to a report in Forbes, last week Windsor's mayor said his city would be willing to purchase Detroit's half of the tunnel, if it comes up for sale during bankruptcy proceedings.
Detroit previously tried to sell the tunnel to Canada, only to back away when questions were raised about the deal.