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Brightline, Florida’s privately operated high-speed rail service running from Miami to Orlando, has missed a July interest payment and the deferment is making some investors nervous.
Now, according to the Wall Street Journal, bond holders are lawyering up as the Fortress Investment Group seeks to cut debt and fresh capital.
Bloomberg reports that Brightline delayed an interest payment on $1.2 billion in bonds last month due to lagging ridership.
Brightline is not in default and still has cash reserves to cover some of its outstanding debt until 2027, according to Bloomberg.
Brightline continues to get good reviews from customers despite recently raising rates for commuters from Miami to West Palm Beach.
The company writing on its website: "It has become increasingly difficult to accommodate all Guests as peak trains are reaching capacity…as a result, the sale of Train Passes will be discontinued effective June 1."
As of June, Brightline hiked rates 251%. At the same time the company is floating a plan to expand service to Tampa.