Brightline West, the much-anticipated and at the same time long-delayed high-speed rail project planned between Las Vegas and Southern California, is facing renewed questions regarding its financing after its Florida-based parent companies filed for Chapter 11 bankruptcy protection.
Almost 20 Companies Filed for Bankruptcy
Brightline Holdings and about 16 affiliated companies filed for bankruptcy in New Jersey last week. The companies reached a restructuring support agreement with existing investors that would provide $490 million in additional funding for the Miami-to-Orlando railroad.
However, Brightline Trains Florida, which is responsible for operating the passenger service in Florida, was not included in the filing and will continue to operate.
Brightline West is also a separate legal entity, despite the fact that it has overlapping ownership with the Florida operation…