Brightline Senior Bonds May Recover Just 44 Cents: CreditSights

Investors holding Brightline Florida’s $2.2 billion of senior bonds could get as little as 44 cents on the dollar in a bankruptcy or restructuring, according to CreditSights. Holders of lower ranked debt could be wiped out in a worst-case scenario.

The struggling $6 billion private railroad, which runs between Miami and Orlando, is facing a complex debt restructuring. Ridership and revenue have fallen far short of projections and a key refinancing deadline looms next month. Fortress Investment Group-backed Brightline has a mix of municipal and corporate notes issued by four subsidiaries.