New Fortress Energy said it had reached a restructuring support agreement with its creditors under a consensual UK restructuring plan.
- As part of the restructuring plan, NFE said that it will split into two entities, separating its Brazil assets from its remaining operations.
- NFE said that creditors will swap debt for a mix of new debt, preferred equity, and a majority equity stake, and that the deal would significantly reduce the new publicly-listed company’s debt.
- The company said that it will launch the UK restructuring process in April, while the entire restructuring is expected to be completed by Q3 2026.
Shares of New Fortress Energy Inc. (NFE) surged more than 25% on Tuesday after the company reached a restructuring support agreement with its creditors under a consensual UK restructuring plan, in a move that is considered to be one of the largest restructuring transactions ever.
As part of the deal, creditors are expected to exchange NFE debt for a combination of debt, common and preferred equity.
The company said that it expects the transaction to be completed by the third quarter (Q3) of 2026.
New Fortress Energy is a global energy infrastructure and liquefied natural gas company founded by Wes Edens, a co-founder of Fortress Investment Group and co-owner of the Premier League team Aston Villa and the NBA’s Milwaukee Bucks.
Restructuring Details
As part of the restructuring plan, NFE said that it will split into two entities — BrazilCo, a private company holding its Brazil assets, and New NFE, a publicly traded LNG-to-power company with its remaining operations.
The company said that creditors will swap debt for a mix of new debt, preferred equity, and a majority equity stake. The deal is expected to reduce the New NFE company’s debt from about $5.7 billion to roughly $527.5 million.
Meanwhile, the company expects to issue up to $2.5 billion in preferred equity and 65% of common shares to creditors. Existing shareholders will be diluted to 35%, with potential for further dilution.
The company said that it will launch the UK restructuring process in April, and the necessary court hearings to review and sanction the plan will follow.
Chairman and CEO, Edens, said that the new NFE will be a “fundamentally transformed company” that will be a capital-light, low-leverage business expected to generate significant free cash flow, supported by long-term supply matched with long-term downstream demand.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NFE shares jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘high’ message volumes.
One bullish user cheered the stock’s price action.
Shares of NFE have declined more than 86% in the past year. Meanwhile, iShares US Infrastructure ETF (IFRA) has gained more than 14% in the last 12 months, while the Vanguard Energy ETF (VDE) has surged over 30%.
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