**New Fortress Energy Initiates Restructuring Amid Debt Challenges**
New Fortress Energy Inc. is entering restructuring discussions as it grapples with significant project delays that have hindered its ability to manage debt obligations. Advisers representing various creditor groups have signed non-disclosure agreements with the liquefied natural gas company, indicating the seriousness of the situation.
Billionaire Wes Edens’ company is actively exploring strategies to reduce its debt and interest expenses. Sources familiar with the matter, who requested anonymity, revealed that New Fortress is seeking a waiver from certain lenders after announcing it may not fulfill all requirements for a revolving loan by the end of the third quarter on September 30. If the company fails to meet these requirements, it risks having lenders demand immediate repayment, as outlined in regulatory filings.
FTI Consulting is reportedly advising some of the lenders involved. Representatives from New Fortress and its advisers, including Houlihan Lokey and FTI, have not commented on the ongoing discussions. Trading activity surrounding the company’s nearly $9 billion in debt has intensified, particularly ahead of an interest payment due on September 15 for a $237 million first-lien bond with an 8.75% interest rate. This bond, maturing in 2029, has seen its trading value drop to 11.2 cents on the dollar from 25 cents earlier in August. Additionally, its 12% bonds traded at 22.125 cents, reflecting a decline of about 4 cents.
Since reaching an agreement with debt holders last October, New Fortress has seen its interest expenses more than double, rising to $420 million from $158 million for the six months ending June 30 compared to the previous year. A group of New Fortress debtholders has engaged Evercore Inc. and Akin Gump Strauss Hauer & Feld for advice, while another creditor group led by Capital Research Group Inc. is consulting with Paul Weiss Rifkind Wharton & Garrison, as previously reported. Perella Weinberg Partners is also advising this latter group.
As New Fortress Energy navigates these financial challenges, the outcome of its restructuring efforts will be closely watched by investors and industry analysts alike.
**FAQ**
**What is New Fortress Energy currently facing?**
New Fortress Energy is dealing with project delays that have impacted its ability to meet debt obligations, prompting the company to initiate restructuring talks with creditors.
