The latest setback came when Brightline deferred an interest payment on $1.2 billion of bonds issued through the municipal-bond market. This move, while permissible under bond documents, has heightened investor anxiety. The company’s financial struggles have been compounded by the cancellation of a $200 million grant from the Florida legislature, which was set to fund a commuter rail project operating alongside Brightline tracks.

The company’s bond ratings have been downgraded by S&P Global Ratings and Fitch Ratings, with some bonds now classified as junk. This has led to a decline in the market value of Brightline’s bonds, with the value of $2.5 billion of notes issued for its California high-speed rail project falling by about $230 million.

Investors are calling for more clarity from Brightline’s management regarding its financing plans for both its Florida and Southern California lines. Largest holders of Brightline’s outstanding municipal bonds, such as Nuveen Asset Management and First Eagle Investment Management, are monitoring the situation closely.