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Detroit-Windsor Tunnel operator files for bankruptcy

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Flickr user jpowers65
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The Detroit-Windsor Tunnel, the underwater highway that connects the U.S. to Canada, could be in trouble.

American Roads LLC, the privately-held company that operates the U.S. side of the mile-long border crossing, as well as four toll bridges in Alabama, has filed for Chapter 11 bankruptcy protection, citing low traffic as the cause, according to a report from Reuters.

The company is $830 million in debt and is seeking to restructure. Under their plan of reorganization, Syncora Guarantee, Inc. will become the tunnel’s new owner after the bankruptcy. The plan will go to the bankruptcy court in Manhattan on August 28 for approval.

Earlier this month, Windsor Mayor Eddie Francis told the Detroit Free Press that Canada would consider buying the tunnel if sold in bankruptcy:

“As long as the tunnel remains in the public interest, then the City of Windsor has no interest in the tunnel. However, if at that time there is a move to take the Detroit half of the tunnel, if it is put on the auction block or if it is being sold or disposed of in a way that is adverse to the public interest, then the City of Windsor will take steps to do whatever we can do to make sure it remains in the public interest.”

American Roads' chief executive Neal Belitsky said in court papers that this is not a result of Detroit’s Chapter 9 bankruptcy filing last week, although that did not help. The company is blaming Detroit’s declining population for the reduced traffic.

During the bankruptcy process, tunnel operations will continue as usual.

-Michelle Nelson, Michigan Radio Newsroom