Bloomberg News recently reported that Fortress Investment Group (FIG) may be planning to sell Florida East Coast Railway, the sister company of All Aboard Florida (AAF). By possibly giving up on the freight business, is Fortress abandoning All Aboard Florida?
All Aboard Florida Can’t Raise Capital.
AAF seeks $1.75 billion to complete its rail route from Miami to Orlando and to acquire necessary rail equipment. But, none of the Private Activity Bonds offered for purchase a year and a half ago have sold. Without this money, All Aboard Florida is stuck.
AAF Permit Requests May Be Denied.
Martin, St. Lucie and Indian River Counties have challenged many All Aboard Florida permit requests. These challenges cover everything from the safety and welfare of the people and socioeconomic impacts to degraded water quality and threats to endangered species. Until these challenges are addressed, AAF is stuck.
AAF Can’t Count On Fortress
Fortress is a $70 billion hedge fund with recent financial problems. The latest financial report shows that second quarter 2016 revenues for Fortress were down 24.6% vs. year ago. Further, the Fortress stock price has fallen 84% since 2007 to about $5.00 per share, close to the minimum required for exchange listing. If Fortress can’t help, AAF is stuck.
All Aboard Florida’s Done Deal Is Coming Undone.
They can’t sell the bonds. Their permit requests are being challenged. Their start date has been delayed several times. Only the Miami-West Palm Beach corridor is being seriously worked on. Now, Fortress may walk away from the freight business. We’ve fought AAF for more than two years. Our persistence is paying off. We will stop All Aboard Florida.