Florida’s Brightline announced that certain entities associated with the company have entered into a Restructuring Support Agreement (RSA) with financial stakeholders, including Assured Guaranty Inc. and an ad hoc group of mutual fund bondholders. According to officials, the agreement will significantly reduce debt on Brightline’s balance sheet and improve liquidity.

RSA Plan

As part of the RSA, supporting stakeholders have committed to provide $490 million in new long-term capital to Brightline Trains Florida LLC, consisting of $140 million in additional senior debt and $350 million in new junior debt.

The $2.2 billion Brightline Trains Florida LLC Issue Series 2024 (Tax-Exempt) Bonds and the existing bond insurance policy issued by Assured Guaranty will remain in place through the restructuring.

In addition, the $985 million Brightline Florida Passenger Rail Expansion Project Series 2025B Bonds, the $925 million AAF Operations Holdings LLC Issue Series 2024 (Tax-Exempt) Bonds, and the $285.7 million AAF Operations Holdings LLC Issue Series 2024A (Tax-Exempt) Bonds will remain outstanding, with no reduction in aggregate principal amounts, through the restructuring.

To implement the RSA, certain Brightline parent entities will commence prearranged Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey. Certain obligations under the new financing, including those of the non-operating parent entities filing for Chapter 11, are subject to Bankruptcy Court approval.

Brightline’s Status in RSA

Brightline Trains Florida LLC, which operates Brightline Florida’s train service, will not file for Chapter 11 and will continue operating in the ordinary course under its existing management team.

Brightline Florida Holdings LLC — the entity that indirectly holds the rights to develop commuter service in Miami-Dade, Broward, and Palm Beach counties — and AAF Operations Holdings LLC — the entity that indirectly holds the Tampa development rights — are also not part of the Chapter 11 process.

“Brightline is a critical part of Florida’s transportation network that has changed the way people move around the state. Today’s agreement brings $490 million in new long-term capital to Brightline from the stakeholders who know this business, and it comes at a time of real momentum,” said Patrick Goddard, CEO of Brightline Florida. “This transaction will be a catalyst for further growth in ridership and revenue. We are grateful to our creditors, advisors, vendors, teammates, and guests for their confidence throughout this process, and we look forward to the bright future ahead.”

Impacting Florida’s Passenger Transportation System

Brightline is a privately owned and operated intercity passenger rail service connecting Miami and Orlando along a roughly 235-mile corridor in Florida. The system serves six stations: Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach, and Orlando International Airport.

The passenger rail service began operations in South Florida in 2018, initially connecting Miami, Fort Lauderdale, and West Palm Beach. Boca Raton and Aventura stations were added in 2022, and the company launched service to Orlando in September 2023 after completing a 170-mile extension from West Palm Beach.

The Orlando expansion was part of a $6 billion project that included track, signal, crossing, bridge, and maintenance facility improvements.

Brightline operates approximately hourly service between South Florida and Orlando from early morning through late evening. The company has positioned the service as an alternative for intercity trips that are relatively short for air travel but lengthy by car.

Brightline reported a 14% year-over-year increase in total revenues through the first eight months of 2026, according to officials.

“This is a financial restructuring that is not expected to impact operations,” said Nicolas Petrovic, CEO of Brightline Train Development LLC, an affiliate of the company. “It will give Brightline the balance sheet to match the growth we’re already seeing across the business. Brightline continues to grow, and the business is strong.”