Florida’s Brightline Rail Avoids Collapse with $490M Lifeline

A dramatic financial turnaround: Brightline, Florida’s only private intercity railroad, has secured a major restructuring agreement to stave off bankruptcy and keep trains running between Miami and Orlando.

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A High-Stakes Rescue: The Restructuring Deal

On September 25, 2026, Brightline announced it had entered into a Restructuring Support Agreement (RSA) with key financial stakeholders, including Assured Guaranty and an ad hoc group of mutual fund bondholders. The RSA brings in $490 million in new long-term capital—$140 million in additional senior debt and $350 million in junior debt—to strengthen liquidity and deleverage the balance sheet. Brightline’s operating entity, Brightline Trains Florida LLC, remains outside of the Chapter 11 filings and will continue normal operations.

Bankruptcy Without Disruption

Several parent and affiliate companies filed for prearranged Chapter 11 in New Jersey, but crucially, the train-operating entity did not. This corporate separation allows the railroad to keep running under existing management while higher-level debt gets restructured. Passengers are unaffected: service between Miami and Orlando continues uninterrupted.