Once praised as the right way to build and run a passenger rail line in the U.S., with nearly $1 billion in tax-funded help, Brightline is now saddled with billions of dollars in debt and seeking to give its Miami-to-Orlando service to creditors willing to loan it even more.
Brightline's web of companies and affiliates filed for Chapter 11 bankruptcy on Sept. 24, seeking to restructure about $4.4 billion in debt. The companies together have as much in liabilities as they do assets, listed in the range of $1 billion to $10 billion.
If a federal court approves the bankruptcy deal, the rail service's parent company, Brightline Trains Florida, will get $140 million in new loans, plus an additional $350 million in loans from creditors who will win
95% control of it from current owner Fortress Investment Group.
Brightline will keep rolling along its 235 miles of tracks, with stops in West Palm Beach and Boca Raton, while the bankruptcy case is pending, the company has said.
Brightline hailed as 'private rail partner' before bankruptcy filing
Before Brightline's inaugural trip in January 2018, and for a while after that, the train won praise from business people and politicians as a way of the future.
One of the train's earliest big boosters was Florida's then-Gov. Rick Scott.
In 2014, Scott supported nearly $214 million from the state going to Orlando International Airport to build an automated people mover connected to the future train station, plus other infrastructure.
When Brightline opened its Orlando station in 2023, Scott, now a U.S. senator, said, "Florida was right to embrace private rail partners." He called the train "great news for Florida families, businesses and the over one hundred million tourists who visit our state each year.”
Brightline has lost more than $1.2 billion since then, financial filings show. It has lost more than $2 billion since 2018.
Along with Scott's commitment, federal, state and local governments have spent more than $543.5 million on Brightline since its 2018 launch either to build or improve tracks, buy new passenger cars, install barriers and AI software to dissuade track-crossers, research the extension to Tampa Bay and construct train stations.
The money includes a $56.5 million Federal Railroad Administration grant awarded in August to build a Space Coast station in the Brevard County city of Cocoa. Officials in Martin County also have discussed building a station in Stuart.
Richard Branson in 2018: Florida rail line at 'forefront of innovation'
When billionaire businessman Richard Branson announced a partnership in 2018 between his Virgin Enterprises and Brightline, he said, "We believe Brightline is at the forefront of this innovation and the ideal partner to work with to alter perceptions and traveling habits across the United States."
But Brightline canceled the deal in 2020. Branson sued. An English court awarded Branson $115 million. Brightline's bankruptcy filing lists Branson as the top creditor with a legal claim against it. Brightline owes him more than $8.6 million.
Brightline also owes more than $5.6 million to 19 other unsecured creditors, such as insurance companies and lawyers, bankruptcy filings show.
Credit rating agencies have been warning for nearly a year that Brightline risks defaulting on its loans. The financial rating company Standard & Poor's said in 2025 that Brightline would default by early 2027 unless it grew revenue by 51%, which would mean raising fares.
Brightline effectively cut fares instead, mainly through multitrip ticket packages and discounts. Passengers riding within Palm Beach, Broward and Miami-Dade counties paid an average of $26.24 per trip from January through August, nearly a $1 decline from the same period in 2025, the company recently reported.
Although the average fare to and from Orlando rose by $1.52, reaching $74.44, the South Florida slump brought down the full line's average fare.
With lower fares attracting more people, Brightline carried a record 3.4 million passengers in the past 12 months. But "ridership and average fares have materially lagged original projections," the company said in documents detailing its proposed debt restructuring.
Brightline predicted in 2018 it would carry 3.1 million passengers by the end of 2023 in South Florida alone, growing to 6.6 million with the addition of the Orlando station. The company had hoped that would open by the end of 2021. The COVID-19 pandemic derailed those plans.
Brightline to raise fares substantially as it deals with bankruptcy
Brightline now hopes to achieve ridership of 5.5 million in 2030 — 3.5 million to and from Orlando, 2 million in South Florida.
Brightline would also raise fares substantially, its bankruptcy proposal says. The South Florida average fare would rise by about $7 by 2030, reaching $33. Orlando trips would increase about $25, reaching $100.
The company says in its business restructuring documents that it would more than double revenue by 2030 to $519 million, from the projected $247 million for 2026.
To boost ridership, Brightline wants to provide nearly half of the trips Florida residents take for "leisure" within South Florida, and to and from Orlando.
The company's filings do not define leisure trips, but do note theme parks in Central Florida and other attractions, such as cruise ports and Miami Beach. It's the "largest market and bedrock of the company," the new business plan says.
Beyond Florida residents, Brightline wants to attract more Florida residents visiting friends, family and loved ones, as well as business travelers and tourists.
Brightline bankruptcy filing makes no mention of fatal crashes
Absent from Brightline's financial filings is any mention of regular crashes between its trains and vehicles or pedestrians.
More than 200 people have died since 2017 crossing tracks into Brightline trains chugging at nearly 80 mph. Brightline has never been found liable for any of those fatalities.
Ex-Brightline conductor Darren Brown sued the company in December for $60 million for the trauma and pain he said he endured from crashes and being ordered to examine bodies of crash victims. That federal case is pending.
Ridership and ticket revenue continue to grow despite the crashes.
Email Chris Persaud at cpersaud@pbpost.com with news tips and article ideas.
This article originally appeared on Palm Beach Post: It's now billions in debt. What happened with Brightline? | Exclusive
