by Donald Wood
Last updated: 8:00 AM ET, Tue September 29, 2026
After filing for bankruptcy, private rail company Brightline has secured $490 million in new financing as it works to restructure billions of dollars in debt.
According to Reuters.com, 17 Brightline affiliates filed for Chapter 11 bankruptcy protection in New Jersey, but Brightline Trains Florida LLC, the company that operates the rail service, will remain outside of bankruptcy.
Despite the issues, the company continues operating its high-speed rail service between Miami and Orlando.
The restructuring is expected to eliminate about $3.3 billion in debt, with Brightline saying the deal will leave $2.2 billion in bond debt untouched, which will be used to finance construction of its rail system.
The $490 million in financing is intended to give the company additional capital to reinvest in its operations while it works through the restructuring. Brightline has pointed to continued growth in both passengers and revenue despite its substantial debt load.
According to the company, ridership has increased 14% from a year earlier, while revenue has risen 17%. Those gains come after Brightline spent more than $6 billion building out its rail system.
The bankruptcy filing also comes as Brightline’s broader expansion plans face scrutiny, including its Brightline West project planned to connect Southern California with Las Vegas.
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