Turnpike Warns Against Blocking Toll Hikes
The financially struggling Massachusetts Turnpike Authority could soon have to repay nearly $450 million in loans.
The money has to do with credit swap deals the agency arranged almost a decade ago. Those deals also established termination fees that rise and fall based on market conditions.
Turnpike Executive Director said Alan LeBovidge said Monday in a statement that the agency would have to pay $353 million in loans if the credit rating of the insurer of some loans from UBS is downgraded.
Another $76 million loan from bankrupt Lehman Bros. would have to be paid if the authority's credit rating drops.
The turnpike's board recently approved toll hikes to deal with the agency's debts.
This program aired on November 25, 2008. The audio for this program is not available.