Brightline Parent Entities File Chapter 11, Service Continues

Brightline Florida has reached a restructuring agreement with creditors that will provide $490 million in new financing as the railroad addresses heavy debt and ridership below earlier projections. Certain parent and affiliated entities are entering Chapter 11 proceedings in New Jersey, but Brightline Trains Florida LLC, which operates the trains, is not filing and will continue service between Miami and Orlando. The agreement is intended to improve the company’s liquidity, while existing bonds will remain outstanding. Brightline says revenue and ridership have been growing, and the restructuring is not expected to affect the separate Brightline West project planned between Las Vegas and Southern California.