Brightline, Florida’s privately operated intercity passenger railroad, has filed for Chapter 11 bankruptcy protection after years of financial struggles and revenue falling short of projections.
The filing was made in New Jersey and covers several of Brightline’s corporate entities. Its train operations are being kept outside the bankruptcy case, allowing the company to maintain its regular passenger service while the restructuring moves forward.
Brightline’s network stretches 235 miles between Orlando and Miami, serving West Palm Beach, Boca Raton, Fort Lauderdale, and Aventura along the way.
The company’s financial problems have grown since the Orlando extension opened in 2023. Passenger numbers have fallen below earlier expectations, putting additional pressure on a business that relied heavily on borrowed money to fund its expansion. More recently, however, Brightline has reported improvements in both ridership and revenue. Through August, year-to-date ridership was up 14% from the same period last year, while revenue increased 17%.
Despite those gains, Brightline has been skipping interest payments on its debt.
Brightline had been negotiating with creditors for months and also explored the possibility of selling the business before turning to bankruptcy protection.
Additional financing is expected to support the operating company after the exit of the other entities from bankruptcy. Assured Guaranty said financial stakeholders will provide $490 million, made up of $350 million in junior debt and $140 million in senior debt.
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