The Globe reported today that the Massachusetts Turnpike Authority has received a demand letter from financial firm UBS, exercising its right to demand a $400 million dollar payment from the Turnpike. From the Globe:
Authority executive director Alan LeBovidge said he was surprised by a letter he received from UBS this week but does not believe the turnpike is in imminent danger of having to pay the lump sum.
“They just kind of called and said, ‘Red Rover, Red Rover, We’re sending a letter right over,’ ” LeBovidge said.
The letter from UBS, sent midweek, puts the authority on notice that it has 30 days to fix a credit problem or it will owe UBS a lump-sum payment to settle a complex investment the two parties agreed on in 2001. UBS spokesman Doug Morris declined to comment last night.
The Turnpike lawyers have been working to resolve the issues that have triggered the UBS letter, and E.D. Alan LeBovidge downplayed the possibility of the Pike actually having to pay this amount.
“This is just the start of a long process,” LeBovidge said. “The turnpike doesn’t have $397 million to give them. I’ve got a lot of bridges I could sell them.”
LeBovidge said the authority and its lawyers believe UBS does not yet have the contractual right to send the letter because a set of financial triggers have not been met.
I hope that LeBovidge is right. And without a doubt lawyers can at least tie up that potential obligation for some time if the parties do not reach agreement. I don’t know about that Red Rover stuff, but LeBovidge is known as a capable guy. The Governor’s transportation reform package has apparently been delayed. It will be amongst his most important actions as Governor.
Bill Manzi.com 
Your Honor,
I sit here marveling at your Democratic friends as they handle the governance of Massachusetts with a deft and skilled hand.
I quote you, “The Governor’s transportation reform package has apparently been delayed. It will be amongst his most important actions as Governor.”
There is that “reform” word again. The transportation bill gets more and more “reformed”.
Actually, if this were a boxing match, I would say the Governor staggers back to his corner (where he reforms his reform).
Do you think Sarah Palin is having this much trouble?
Jules
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I think she did have more trouble than that until the voters sent her back to Alaska.
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Ah, you honor, she returned to Wasila but, thanks in part to you, not to obscurity. Unlike the Vice President elect, Joe what’s-his-name.
She’ll be back.
Say, your honor, would you like me to send you a framed, autographed picture of Sarah Palin suitable to be hung in your office?
I could visit you and we can spend hours reminiscing about her. You betcha.
Jules
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Jules, “that deft and skilled” hand is in the taxpayer’s pocket, in the HOPE of scooping up CHANGE.
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Mr.Mayor, Alan Le Bovine is a hack bureaucrat who’s just a little to glib. “Red Rover, Red Rover…” and “I’ve got a lot bridges I could sell them”! It’s a $400 million bill Mass. taxpayers will have to pay! And you Mr. Mayor “hope” that Le Bovine…Oh, yeah, I forgot, HOPE and, ah, you know, ah, CHANGE, and ah, well you know…Gad! what a STATE we’re in!
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Ben,
I am forced to agree that we are in a terrible state because of financial decisions that were made poorly, with motivations that were less than pristine. I do not know LeBovidge, but I believe he is a serious manager that will not put up with b.s. He needs to get legislative approval for just about anything he does. That is where the real action is. If the legislature does not get serious about cutting out the nonsense built into the system then we will sink as a state.
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Your Honor,
Maybe LeBovidge can team up with Steve Baddour. Steve needs something to do. This is transportation related.
If they cut out the nonsense there will be nothing to do.
I do believe the state has rammed into the political equivalent of an iceberg. Let us meet at the state house and we can join hands and sing as the ship of state sinks.
Jules
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Your Honor,
Will the gas tax “reforms” take care of this issue?
Jules.
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