Florida’s Brightline Skips Second Payment on Subordinate Munis

Brightline Trains Florida, the Fortress Investment Group-backed passenger railroad, skipped its second interest payment on $1.2 billion of subordinate municipal bonds.

The private railroad, which is struggling to boost ridership and revenue, deferred a Jan. 15 interest payment on debt sold by a subsidiary, AAF Operations Holdings, according to a regulatory filing. Brightline skipped the first interest payment on the debt in July.