In the US, Brightline has filed for Chapter 11 bankruptcy protection, as the privately owned Florida passenger rail operator seeks to restructure billions of dollars of debt.
The Chapter 11 petitions were filed on 24 September in the US Bankruptcy Court for the District of New Jersey by Brightline Holdings LLC and a number of affiliated companies.
The filing covers assets and liabilities estimated at between 1 billion USD and 10 billion USD.
Importantly, Brightline Trains Florida LLC, the company responsible for operating Brightline’s passenger rail service, is not included in the bankruptcy filing. The structure will allow trains to continue operating while the company’s financial restructuring takes place.
Brightline operates a 235-mile passenger rail service between Miami and Orlando, with intermediate stops including Aventura, Fort Lauderdale, Boca Raton and West Palm Beach. The company began passenger operations in 2018 and extended services to Orlando in 2023.
Brightline has been working with creditors for more than a year to restructure its financial obligations. The company has approximately 5.5 billion USD of debt, according to reports from the Wall Street Journal, with the restructuring intended to reduce this to approximately 2.7 billion USD.
The bankruptcy filing follows negotiations between Brightline and its creditors over the company’s debt position. The restructuring is being supported by a group of financial stakeholders, with an agreement providing for new funding for the operating company.
Assured Guaranty, which insures slightly more than half of Brightline Trains Florida’s existing senior tax-exempt bonds, said the restructuring agreement includes 490 million USD of new capital for the operating company following its affiliates’ exit from bankruptcy. This comprises 350 million USD of new junior debt and 140 million USD of additional senior debt.
The financial stakeholders have also agreed to provide 258 million USD of post-petition funding while the bankruptcy proceedings are ongoing. Assured Guaranty has committed to provide up to 178 million USD of this funding.
Brightline’s operating company will remain outside Chapter 11, and the bankruptcy filings therefore do not alter the payment obligations associated with the senior bonds insured by Assured Guaranty.
Passenger Services
Brightline has confirmed that the Chapter 11 proceedings will not result in the immediate suspension of Brightline’s passenger services.
The decision to leave Brightline Trains Florida outside the bankruptcy proceedings is intended to allow the railway to continue operating while its parent and affiliated companies undergo restructuring.
The company’s financial difficulties have emerged despite continued growth in passenger numbers. Brightline carried almost 1.5 million passengers between January and May 2026, a 16 percent increase compared with the same period in 2025, according to figures reported earlier this year. However, passenger and ancillary revenues have not been sufficient to cover operating costs and debt interest.
In a statement to passengers, Brightline said:Following today’s financial news about Brightline, we want to share an important update and assure you directly: It is business as usual for Brightline. We are operating our full schedule of trains, and our teammates are ready to welcome you onboard.
Brightline has built something truly remarkable — a world-class passenger experience with growing ridership and a service our guests love. That said, we need to right-size our balance sheet to strengthen the business for the long term.
So today, entities associated with Brightline utilized Chapter 11 of the bankruptcy code to restructure the company’s debt – but don’t worry – the trains, the team and the service you know are not impacted and will continue to run as usual.
The company has also continued to pursue expansion plans. Brightline West, a separate project backed by the same Fortress Investment Group ownership, is developing a planned high-speed rail connection between Southern California and Las Vegas. The Florida bankruptcy filing does not place Brightline West itself into Chapter 11.
The restructuring will now proceed under the supervision of the US Bankruptcy Court for the District of New Jersey.
