Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Wednesday, June 3. In today's briefing, Brightline, the Fortress Investment Group-backed high-speed rail operator, is evaluating bankruptcy-loan offers from multiple creditor groups, according to people familiar with the matter. And Perella Weinberg Partners’ head of U.S. restructuring, Alexander Tracy, and Houlihan Lokey managing director Russell Mason are joining rivals Evercore and Moelis, respectively, as investment banks reshuffle restructuring talent to capture a rise in complex, out-of-court liability management deals, sources told WSJ Pro Bankruptcy.

Florida’s Brightline is fielding bankruptcy-loan offers from creditors after the high-speed railroad operator issued a going-concern warning less than two months ago, people familiar with the matter said.

The Fortress Investment Group-backed company, with roughly $5.5 billion in debt, has been trying to avoid filing for bankruptcy for months after slow ridership growth weighed on its business and it faces a spate of personal-injury lawsuits tied to accidental deaths on the tracks.

Multiple creditor groups have submitted offers to provide financing that would fund the operation if the company files for bankruptcy, the people said. More investors are expected to make proposals in the coming days, the people said. Brightline declined to comment on the loan proposals, which Bloomberg reported on earlier Tuesday.

Perella Weinberg Partners’ head of U.S. restructuring is departing the investment bank for larger rival Evercore, while Moelis also added a banking veteran to its ranks, according to people familiar with the moves.

Alexander Tracy, who started at Perella Weinberg in 2016, will join Evercore as a senior managing director in its restructuring group, the people said. Separately, Russell Mason, a managing director in Houlihan Lokey’s financial restructuring group, is joining Moelis as a managing director in the firm’s capital structure advisory practice, people familiar with the move said.

The moves point to how some investment banks are reshaping their liability-management and restructuring benches, competing for senior talent with sector expertise as more corporate debt defaults are resolved in private deals outside of bankruptcy court.

Francis Davidson is plotting his comeback to the travel industry with an AI travel agent, following the messy collapse of his short-term rental startup Sonder.

After Sonder went bankrupt last fall, Davidson started developing Odessia, a ChatGPT-like platform designed to help consumers plan and book every element of their vacation. The travel agent and chatbot, which is launching a preview version for early customers this week, has about $6 million in funding, about $4 million of which is from Sequoia Capital, Davidson said.

"I've just been concentrating on building this thing 16 hours a day to get the best possible comeback story," Davidson said.

Odessia gathers its information from companies like Kayak and GetYourGuide via a series of partnerships Davidson has been cultivating over the past several months. The platform also remembers customers' travel preferences and rewards programs so it can make recommendations more personalized over time.

—Katherine Hamilton

Private-credit firms have had investors and regulators on edge. Now, their insurers are worried, too.

Insurers that provide coverage to executives and boards are bracing for a wave of lawsuits and regulatory actions in the private-credit industry. Some are starting to raise premiums, with several insurance executives estimating that there could soon be double-digit increases from a year earlier.

Insurers are also tightening coverage terms for renewing or opening new policies, the executives said.

Federal Reserve Chairman Kevin Warsh has tapped two outside associates to advise him while he settles into the job, one of whom previously helped write a conservative blueprint that recommended a radical restructuring of the central bank.

One adviser is Paul Winfree, according to people familiar with the matter. He was a White House domestic policy specialist in the first Trump administration. He was the named author of the chapter on the Federal Reserve in Project 2025, the conservative policy blueprint produced ahead of the 2024 election.

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