WEST PALM BEACH, Fla. (CBS12) — Overnight, Brightline confirmed it reached a deal to restructure its finances, following reports that the company was nearing a Chapter 11 filing.
The bottom line for riders is that Brightline says trains between Miami and Orlando will continue running as normal.
Brightline says the new deal brings in $490 million in new financing. The money will help reduce the company’s debt and improve its cash position.
Some of Brightline’s non-operating parent companies will enter pre-arranged Chapter 11 cases. However, Brightline Trains Florida, the company that actually operates the trains, will not file for bankruptcy.
“Brightline is a critical part of Florida’s transportation network that has changed the way people move around the state. Today’s agreement brings $490 million in new long-term capital to Brightline from the stakeholders who know this business, and it comes at a time of real momentum,” said Patrick Goddard, Chief Executive Officer of Brightline Florida. “This transaction will be a catalyst for further growth in ridership and revenue. We are grateful to our creditors, advisors, vendors, teammates, and guests for their confidence throughout this process, and we look forward to the bright future ahead.”
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Ultimately, Brightline says the restructuring will strengthen the company and support future growth.
The company also says revenue is up 17 percent so far this year.