The New Fortress Energy restructuring has taken effect after the company completed all required steps under a consensual United Kingdom restructuring plan. New Fortress Energy (NASDAQ: NFE) said the transaction extinguished approximately $5.7 billion of third-party debt.
The company’s Brazilian business and operations have been separated into a standalone enterprise called BrazilCo, while the remaining operations will continue as “New NFE.” The plan had received UK court approval on June 18 and recognition from the U.S. Bankruptcy Court for the Southern District of New York on June 26.
New Fortress Energy Restructuring Creates Two Standalone Businesses
Plan creditors received all of BrazilCo’s equity, preferred equity in New NFE with a $2.45 billion liquidation preference, 65% of New NFE’s common equity and approximately $571.3 million of term loans. Certain FLNG 2 creditors also received securities tied to those assets.
The company’s official investor announcements provide updates on the process and its operating businesses. New NFE also raised $136.5 million of new financing when the restructuring became effective.
The New Fortress Energy restructuring materially reduces legacy debt but transfers substantial ownership and economic rights to creditors. Future value will depend on liquidity, project execution, LNG market conditions and the performance of the newly separated businesses.
