Wednesday, March 11, 2015
Australian Company Pays $5.725 Billion For Bankrupt Indiana Toll Road
This is the definition of insanity. An Australian company, IFM Investors, has paid $5.725 billion to purchase ITR Concession Co.'s interest in the Indiana Toll Road from the bankruptcy trustee. Yes, that's nearly $2 billion more than ITR paid for the toll road in 2006 before it racked up nearly $6 billion in debt before going bankrupt. The Indiana Finance Authority, which oversees the toll road, has given its blessings to the deal. Can someone explain to me how IFM can turn a profit with nearly $6 billion in debt when ITR couldn't make it happen with annual revenue projections of $230 million?