American Roads LLC, operator of the Detroit Windsor Tunnel linking the U.S. with Canada, moved closer to shedding $830 million in debt from swaps and bonds after a judge denied a bondholder group’s bid to join the case, Bloomberg News reported yesterday. Bankruptcy Judge Burton R. Lifland ruled yesterday that an ad-hoc group of investors didn’t have legal standing in the case and therefore couldn’t object to American Roads’ proposed reorganization. Under the plan, holders of $496 million in bonds will receive nothing and ownership of the company will change hands. Judge Lifland approved the company’s disclosure, and said that he would decide later whether to approve the plan, allowing American Roads to exit court protection.
