SAN FRANCISCO, July 3 The Foothill-Eastern
Transportation Corridor Agency, a road toll operator in Orange
County, California is at risk of defaulting on its bond payment
obligations, State Treasurer Bill Lockyer said on Wednesday.
"Without the refinancing, the risk of default is
unacceptably high, threatening negative consequences not only to
the agency and its bondholders, but to local governments and the
state as well," Lockyer said in a letter accompanying a report
proposing a $2.2 billion debt restructuring.
The agency's toll roads, built with proceeds from
toll-revenue bonds issued in the 1990s, have not seen projected
growth rates in traffic and toll collections, which are below
the level needed to keep up with increases in future debt
service, the report said.