The Dallas-to-Houston bullet train project has hit another obstacle.

Renfe, the Spain-based railway company contracted as the development’s early operator, has closed American subsidiary company Renfe of America and put it into liquidation. According to a report from Spain, the subsidiary accumulated a loss of 4.5 million euros, or about $5 million, and recorded a 100% impairment on investments made over the past five years.

The impairment of Renfe’s stake in Renfe of America indicates the company’s refusal to recover invested capital and recognizes that it doesn’t anticipate any returns from the subsidiary, according to Spanish business publication El Economista. The railway company has also had to recognize the loss of outstanding balances for previous years due to non-payment for work conducted since 2019. 

Read more: https://www.wfaa.com/article/travel/dallas-to-houston-high-speed-rail-project-setback/287-2178d7ac-8053-4911-b28c-dc43e9c5e2ea

Additional expanded context: https://www.newsweek.com/texas-high-speed-rail-project-future-uncertain-setback-2091607

Photo credit: Texas Central