New Fortress Energy subsidiaries advance UK restructuring plan

New Fortress Energy Inc. subsidiaries NFE Global Holdings Limited and NFE Brazil Newco Limited have received permission from the High Court to convene creditor meetings on a proposed UK restructuring plan that would separate the global LNG infrastructure group into two businesses and materially deleverage its post-restructuring balance sheet.

The Convening Order, granted on 14 May, permits the plan companies to hold creditor meetings on 15 June at the London offices of Skadden, Arps, Slate, Meagher & Flom, with creditors able to participate physically or virtually. The sanction hearing is scheduled for 18 June.

The plan follows a restructuring support agreement entered into on 17 March with creditor groups, with the company describing the transaction as one of the largest consensual UK restructuring plan transactions to date. New Fortress Energy said creditor support has reached 97% in value, positioning the process as a largely consensual balance sheet restructuring rather than a contested cram-down fight.

The restructuring is designed to split the business into “BrazilCo”, a privately held standalone company comprising NFE’s terminals, power plants and operations in Brazil, and “New NFE”, a publicly traded LNG-to-power business holding the group’s remaining assets and operations. Creditors would exchange existing debt instruments for a package of New NFE debt, preferred equity and common shares.

The transaction would reduce New NFE corporate debt from approximately $5.7 billion to approximately $527.5 million, while issuing up to $2.5 billion of preferred equity and 65% of New NFE common equity to creditor groups. The preferred equity would carry a three-year term with a payment-in-kind coupon stepping from 3% in year one to 5% in year two and 7% in year three. Any preferred equity still outstanding at maturity would mandatorily convert into its pro rata share of 87% of New NFE’s common equity.

Existing shareholders would retain 35% of New NFE common equity, but would face further dilution if the preferred equity converts at the end of the three-year period. The structure effectively leaves creditors with control economics while preserving a listed equity stub for existing shareholders.

The restructuring comes against a backdrop of acute liquidity pressure. New Fortress Energy reportedly carries approximately $8.57 billion of total debt and a current ratio of 0.13, with short-term obligations exceeding liquid assets. The company’s share price has fallen sharply over the past year, reflecting investor concerns over leverage, liquidity and execution risk.

The company has also announced related financing and liquidity measures, including commitments for $885 million of senior secured notes due 2029 at NFE Brazil Financing Limited, a $265.9 million turbine sale and leaseback with Macquarie Energy LLC and a forbearance agreement with lenders and Natixis, New York Branch, extending temporary relief in respect of certain defaults until September 2026.

Operationally, the restructuring sits alongside efforts to stabilise and monetise core infrastructure assets. New Fortress Energy has announced a long-term lease and capacity agreement for its Terminal de Gás Sul LNG import terminal in Brazil, which the company expects to generate $50 million in annual EBITDA by 2027.

The case sits alongside Fossil Group (which we covered here) as another example of the restructuring plan being used by an overseas-headquartered group to access English court oversight for a targeted financial restructuring.

If sanctioned, the plan is expected to complete in the third quarter of 2026, subject to customary conditions and regulatory approvals. Kroll is acting as information agent and has made the explanatory statement and voting materials available to creditors.