Brightline’s Hedge Fund Bondholders Ready Restructuring of Debt

Hedge funds with a stake in Brightline’s $1.1 billion of corporate debt are crafting a plan to elevate their claims over other similar creditors by offering new financing and concessions to the struggling high-speed rail project.

A group of holders of Brightline’s corporate bonds due 2030 is proposing a debt deal that could see them extend more capital to the company and permit new equity investments from outside investors, according to people with knowledge of the discussions.

Brightline, a Fortress Investment Group-owned private commuter rail project that’s been falling short of projections, said recently it’s working to issue “a ...