From The Bond Buyer, July 27:
Brightline Florida bondholders have agreed to yet another short-term debt extension while the train line continues to negotiate a debt restructuring.
The struggling company has until the end of the week to make the payments, negotiate another extension, or reach a comprehensive restructuring deal. The latest delay follows a week-long extension that bondholders granted in mid-July.
The brief payment postponement was granted by holders of the $1.2 billion of unrated, or AAFOH, tax-exempt bonds and $985 million of "commuter" bonds, which are linked to a separate project that would establish commuter rail rights for three Florida counties.
Each grace period since January has gotten shorter as Brightline Florida apparently continues to negotiate with its creditors in what most in the muni market expect will end in a comprehensive capital restructuring. If the situation lands in bankruptcy court, it would mark one of the largest in the municipal market's history.
The Fortress Investment Group-backed company operates a 235-mile train in Florida that's the nation's only privately owned intercity rail line. Saddled with $5.5 billion of debt and revenue performing under projections, Brightline has spent the last year trying to raise new financing.
A securities notice posted Friday outlines the latest delay. It pushes the July 15 AAFOH debt payment to July 31, and gives the company until July 30 to make a mandatory redemption on the commuter bonds. The commuter holders also gave the company until July 31 to make an interest payment that was originally due Feb. 15.
It's the fifth supplement for the AAFOH bonds and the 14th supplement to the commuter indenture.
First Eagle, Nuveen, Invesco, BlackRock and Macquarie are among the largest Florida muni holders....
....MUCH MORE
Previously:
June 2023 - The U.S. Has High-Speed Rail
It's not as fast as the trains in France, and about the same speed as Japan's Tokyo - Osaka run, but it is quicker than California's.*
From ConstructionDive, June 22:
Brightline’s $5B Orlando high-speed rail extension complete
May 3, 2026 - Florida High Speed Rail: "The Great Train Bankruptcy"
May 13, 2026 - High Speed Rail: "Florida’s Ailing $6 Billion Rail Line Has Debt Vultures Circling"
