MIAMI (WSVN) - Passenger rail operator Brightline entered into a financial restructuring agreement Friday that will provide $490 million in new capital to its Miami-to-Orlando service while parent companies file for Chapter 11 bankruptcy protection, officials announced.
The operating company, Brightline Trains Florida LLC, will not file for bankruptcy and will continue regular passenger service across Miami-Dade, Broward and Palm Beach counties under existing management, company officials said.
Entity holders for future expansion rights, including commuter rail service rights in South Florida and development rights in Tampa, are also excluded from the court filing. The prearranged Chapter 11 process for parent entities will take place in the U.S. Bankruptcy Court for the District of New Jersey.
Financial stakeholders, including Assured Guaranty Inc. and an ad hoc group of mutual fund bondholders, agreed to provide $140 million in additional senior debt and $350 million in new junior debt under the Restructuring Support Agreement.
Nicolas Petrovic, CEO of affiliate Brightline Train Development LLC, stated that train service will continue without interruption.
“This is a financial restructuring that is not expected to impact operations,” he said.
The restructuring announcement follows a reported 17% year-over-year increase in total revenues for Brightline through the first eight months of 2026, company officials said.
Brightline currently operates passenger rail stations connecting Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach and Orlando.
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