Brightline Is Reportedly Nearing Chapter. 1 Determination May Hold Its Trains Working
The Florida-based passenger railroad’s total debt is $5.5 billion. A Chapter 11 filing would allow it to restructure.
Brightline, the privately owned passenger railroad that connects Miami and Orlando, is preparing an apparently imminent Chapter 11 bankruptcy filing citing
The potential bankruptcy, which could happen as soon as this week, would allow the heavily indebted Florida company to restructure about $1.1 billion in corporate debt.
The railroad’s total debt is roughly $5.5 billion.
Brightline declined to comment on reports of a pending bankruptcy proceeding or a potential filing date.
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No service reductions, schedule changes, or station closures have been announced.
Brightline’s operating unit reportedly would not be included in the Chapter 11 filing, allowing trains to continue running without the appointment of a federal trustee.
“That is a deliberate structural choice, and it is the whole reason travelers should not panic,” writes Inside the Magic, a digital news site that covers Disney theme parks and the entertainment industry. “Keeping the operating company out of the filing… means daily service between Miami, Orlando, and every station in between continues on its normal schedule.”
Source: www.inc.com
