SOUTHERN CALIFORNIA, CA. (Pain In The Pass) >> Brightline Florida has filed for Chapter 11 bankruptcy protection, citing heavy debt because of lower ridership than what the company initially projected. This is creating more questions about what’s going to happen with the Brightline West project.
While the projects are completely different businesses with separate funding, they are both owned by the same parent company, Fortress Investment Group.
Back in May, Brightline in Florida currently has $5.5 billion in debt and $131 million in cash, and an audit revealed “management is working to consummate one or more additional capital raises.”
On Thursday, the company announced certain entities associated with the company have entered into a Restructuring Support Agreement, which will “significantly deleverage Brightline’s balance sheet and greatly improve liquidity.”
“This is a financial restructuring that is not expected to impact operations,” said Nicolas Petrovic, Chief Executive Officer of Brightline Train Development LLC.
What does that mean for Brightline West and the Las Vegas-Southern California high-speed train?
A spokesperson told me “Whatever may be happening with Brightline in Florida would not have an impact on Brightline West or our plans for the project.”
Right now, Brightline West is still working through finding financing to fully fund that project and “remains focused on moving the Vegas to SoCal project forward.”
When looking at a securities filing from earlier this month, Brightline West officials said they have “locked in the major components of the project’s budget and schedule.”
That document also states the remaining budget to complete the project is $20.9 billion.
Brightline continues to grow and the business is strong.
While the goal for the Las Vegas to Southern California line to open in time for the 2028 Olympics, the project has been pushed back to late 2029.
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