New Fortress Energy Seeks Extension on Debt Restructuring Amid Financial Struggles
New Fortress Energy Inc. is seeking an extension from creditors to complete its debt restructuring before a forbearance period expires, following project delays and a missed $30.6 million interest payment on its term loan B. With total debt at $8.9 billion, including $6.6 billion classified as current, the company risks bankruptcy if an extension is not secured, as its term loan and secured notes have significantly decreased in value. Various creditor groups are currently engaged in discussions for restructuring support.
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New Fortress Energy Inc. is requesting an extension from creditors to finalize a debt restructuring before a forbearance period expires on Friday. The liquefied natural gas operator is negotiating additional time with lenders due to project delays and declining cash flow.
New Fortress entered a forbearance agreement after missing a $30.6 million interest payment on its term loan B facility due in 2028. If no extension is secured, debt holders may accelerate principal payments, potentially leading to bankruptcy, as the company has total debt of $8.9 billion, with $6.6 billion classified as current.
The company's term loan maturing in 2028 is quoted at around 41 cents, while its 12% secured notes have dropped to nearly 28 cents on the dollar. Various creditor groups are engaged in discussions for advice and restructuring support.
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