This is a breaking news story. More updates to come
High-speed rail company Brightline has entered into a financial restructuring agreement that would help it reorganize its billions of dollars of debt — while other entities of the company are set to file for bankruptcy.
The financing agreement announced early Friday is with major debt holders to restructure its IOUs while securing $490 million from supporting stakeholders. That has to be okayed by a bankruptcy court.
The bankruptcy proceedings will affect Brightline's parent company and not the operating company of the Miami-to-Orlando high-speed rail operations.
"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, in a company statement.
"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."
Brightline has been negotiating with its lenders for more than a year. It has about $5 billion dollars in debt.
"This is a financial restructuring that is not expected to impact operations. It will give Brightline the balance sheet to match the growth we're already seeing across the business. Brightline continues to grow and the business is strong," said Nicolas Petrovic, Chief Executive Officer of Brightline Train Development LLC, an affiliate of the Company.
READ MORE: Brightline cuts losses yet 'substantial doubt' remains it can avoid bankruptcy
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