Brightline has reached a financial restructuring agreement with stakeholders that will provide $490 million in new financing and place certain parent entities into prearranged Chapter 11 proceedings while leaving its Florida passenger rail operations outside bankruptcy.
The Miami-based rail company announced Friday that the restructuring support agreement was reached with financial stakeholders including Assured Guaranty Inc. and an ad hoc group of mutual fund bondholders. Brightline said the transaction is intended to reduce debt at portions of its corporate structure and improve liquidity.
Under the agreement, supporting stakeholders will provide $140 million in additional senior debt and $350 million in new junior debt to Brightline Trains Florida LLC.
Brightline Trains Florida, which operates passenger service between Miami and Orlando, will not file for Chapter 11 and will continue operating under its existing management team.
Certain non-operating parent entities will seek bankruptcy court approval for the restructuring in the U.S. Bankruptcy Court for the District of New Jersey.
Several major Brightline bond obligations will remain outstanding and will not have their aggregate principal amounts reduced. Those include $2.2 billion in Brightline Trains Florida tax-exempt bonds issued in 2024, $985 million in Brightline Florida Passenger Rail Expansion Project bonds and about $1.21 billion in bonds issued by AAF Operations Holdings.
Brightline Florida Holdings LLC and AAF Operations Holdings LLC will also remain outside the Chapter 11 proceedings. Those entities indirectly hold rights associated with proposed commuter rail service in Miami-Dade, Broward and Palm Beach counties and Brightline’s planned expansion to Tampa.
The company said it will continue pursuing additional stations, including a planned Cocoa station, along with South Florida commuter service and an extension from Orlando to Tampa.
