Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Reduced traffic blamed for Detroit tunnel's bankruptcy

Bankruptcy news has touched the city of Detroit, and now it has crossed over to  a tunnel in the city -- specifically, the Detroit-Windsor Tunnel, which connects Detroit to Windsor, Ontario. The U.S. side of the tunnel is operated by a privately-held company called American Roads LLC.

Just a week after Detroit filed for Chapter 9 bankruptcy, the tunnel operator announced its Chapter 11 bankruptcy. Their debt reportedly amounts to $830 million. In late August, the company plans to head to bankruptcy court in Manhattan to approve a plan that will make Syncora Guarantee, Inc. the tunnel's new owner post bankruptcy.

The chief executive for American Roads LLC said Detroit's bankruptcy did not lead to the company's filing, but it also did not help. The main reason, according to the company, is reduced traffic, which is being caused by Detroit's declining population. That number is now under 700,000, a large decline from the middle of last century when it peaked at 1.8 million.

The company, which also owns several toll roads in Alabama, plans to pay most of its "low-priority general unsecured creditors" in full.

Just as any city in Michigan can go through hard financial times, so can its businesses. A Chapter 11 bankruptcy gives a business time to reorganize and plan a way to pay debts, while keeping the business running. In the case of the Detroit-Windsor Tunnel, Michigan residents will be happy to know that the bankruptcy filing will not affect drivers' ability to use the tunnel.

Source:, "Detroit-Windsor Tunnel operator files for bankruptcy," July 25,, "Detroit Windsor Tunnel operator files for bankruptcy," Tom Hals, July 25, 2013

  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy