Florida / Transportation

Brightline Prepares for Possible Chapter 11 Filing, Bloomberg Reports

The reported plan would focus on about $1.1 billion in corporate debt while keeping the passenger railroad's operating unit outside the case.

Brightline passenger train crossing a railroad bridge in Florida
Image Credit: Brightline

Brightline is preparing for a possible Chapter 11 bankruptcy filing as soon as this week, according to Bloomberg News. The plan under discussion would restructure about $1.1 billion in corporate debt.

People familiar with the confidential discussions told Bloomberg that Brightline's passenger railroad operating unit would remain outside the proposed case. That structure is intended to let the company continue running trains while it addresses debt elsewhere in the business.

Brightline’s filing plans remain under discussion

Brightline has not announced a Chapter 11 filing. A possible filing could come as soon as this week, but the timing and structure remain under discussion and could change.

The proposed structure would keep trains operating by leaving the railroad unit outside the filing.

Read the original Bloomberg News report.

Source: original reporting by Bloomberg News, based on people familiar with confidential discussions.

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