Brightline, the private equity-backed passenger rail service in Florida, has filed for bankruptcy in a federal court in New Jersey, seeking to slash nearly $6bn in debt after years of disappointing ridership. The filing followed months of negotiations involving bondholders including Nuveen, First Eagle, Nut Tree Capital Management, Aristeia Capital, and Redwood Capital Management. The pre-packaged plan includes $258mn in financing, partly from Assured Guaranty, plus $490mn in post-emergence funding from existing bondholders.

Brightline Florida CEO Patrick Goddard called the agreement a sign of momentum, while First Eagle's John Miller said it preserves par value of tax-exempt debt. The private equity sponsor Fortress Investment Group had acquired Florida East Coast Railway in 2007 for $3.5bn and launched the Brightline service from Miami to Orlando. A 2024 prospectus projected 8mn riders by 2026, but actual ridership reached only 3mn in 2025.

The company's planned 218-mile Brightline West route from Las Vegas to southern California remains uncertain. Brightline Trains Florida, the main railroad subsidiary, is not part of the bankruptcy filing.