New Fortress Energy has completed its restructuring and recapitalization under a consensual UK Restructuring Plan, significantly reducing the company’s debt and separating its Brazilian operations into a standalone business.
The restructuring plan was approved on June 18, 2026 and recognized by the U.S. Bankruptcy Court for the Southern District of New York on June 26. All conditions and approvals have now been satisfied.
Under the restructuring, NFE’s Brazilian operations were separated into a standalone company called BrazilCo, while the remaining operations became “New NFE.”
The transaction extinguished approximately $5.7 billion of third-party debt. Plan creditors received all of the equity in BrazilCo, 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 New NFE term loans.
Certain creditors with claims associated with FLNG 2 also received preferred equity and term loans tied to those assets.
New NFE separately raised $136.5 million of new financing at the restructuring effective date.
Following the transaction, New Fortress Energy said overall corporate debt has declined from approximately $5.7 billion to approximately $700 million.
The streamlined company retains LNG and power assets including operations in Mexico and Puerto Rico and a 735 MW power and turbine portfolio.
Skadden is serving as legal advisor to NFE, while Houlihan Lokey and Alvarez & Marsal are serving as financial advisors.
KEY QUOTES:
“This restructuring marks a new beginning for our company. The UK RP restructuring results in the ‘New NFE’ being a much simpler, more streamlined company. The Company owns a portfolio of critical LNG and power assets, including a substantial and growing LNG portfolio, terminal operations and logistics in Mexico and Puerto Rico and a 735mw power and turbine portfolio. These assets and operations produce significant cash flow today and when fully deployed in the coming months provide the opportunity for significant growth. As a result of this transaction our balance sheet has changed dramatically – overall corporate debt has been reduced from approximately $5.7 billion to approximately $700mm today. The closing today is a huge step forward for the Company and we are excited to bring a renewed focus on our mission of bringing cleaner and cheaper power to countries around the world.”
Wes Edens, Chief Executive Officer of New Fortress Energy
