Brightline is reportedly preparing to file for Chapter 11 bankruptcy protection as soon as this week, according to a Bloomberg source cited by WDW News Today. The reported filing would be aimed at restructuring the Florida rail company’s corporate debt.
The company has about $1.1 billion in corporate debt that sits below senior municipal bonds in its capital structure, while its total debt is reported at roughly $5.5 billion.
Brightline’s operating unit would not be included in the bankruptcy, meaning train service is expected to continue. Keeping that unit outside the case would also avoid the appointment of a federal trustee, according to the report.
Last month, Brightline reached a restructuring support agreement with Assured Guaranty involving at least $350 million in loans. The company is also reportedly finalizing financing terms with municipal bondholders including First Eagle Investment Management and Nuveen. Source: WDW News Today.
