Brightline, the passenger rail service connecting South Florida with Orlando, is reportedly preparing to file for Chapter 11 bankruptcy as the company works to restructure a significant amount of debt. For travelers, however, the most important part of the story is this: Brightline’s Florida trains are expected to continue operating.
According to Bloomberg reporting cited by the South Florida Sun Sentinel, Brightline is nearing a Chapter 11 filing involving approximately $1.1 billion in corporate debt. The potential filing would be structured so that the company’s operating unit is excluded, meaning regular passenger service between Miami and Orlando would continue rather than shutting down as part of the bankruptcy process.
That’s an important distinction for Walt Disney World travelers who use Brightline to travel between South Florida and Central Florida. Brightline currently operates stations in Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach, and at Orlando International Airport. The company’s own website continues to show normal station operations, including its Orlando station, which is open daily from 4:30 a.m. through the final train departure.
The financial trouble itself hasn’t appeared overnight. Bloomberg reported in August that Brightline reached an agreement with Assured Guaranty for at least $350 million in new financing that could be used in connection with a bankruptcy restructuring. A group of hedge funds holding Brightline corporate bonds has also reportedly been in discussions with the Fortress Investment Group-backed railroad.
As of September 23, Brightline has not publicly announced a Chapter 11 filing on its press website. In fact, the company’s most recent announcement on September 22 concerned an upcoming partnership with Scouting America, and Brightline continues to promote and operate its Florida passenger service.
For anyone who already has Brightline tickets as part of an upcoming Walt Disney World vacation, there is currently no indication that you need to change those plans because of this report. A Chapter 11 restructuring is different from a company simply closing its doors, and the reported plan specifically calls for passenger operations to continue.
We’ll be watching this one closely, particularly for any official statement from Brightline and for what the restructuring could eventually mean for the company’s longer-term Florida plans. For now, though, those Brightline trains between South Florida and Orlando are still running.
The post Brightline Reportedly Nears Bankruptcy, but Florida Trains Will Keep Running first appeared on The DIS.
