New Fortress Energy Pushes Through $5.2 Billion Debt Slash as Survival Hinges on Court Approval

New Fortress Energy proposes a sweeping restructuring to cut over 90% of its $5.7B debt, but survival hinges on a London court hearing in May 2026 amid going-concern doubts.

New Fortress Energy has laid out an aggressive restructuring blueprint that would wipe nearly all of its $5.7 billion in liabilities off the books, but the LNG specialist's future now depends on a London court hearing scheduled for mid-May 2026. The company disclosed in an amended annual report that there is "substantial doubt" about its ability to continue as a going concern without the successful execution of these sweeping financial measures.

The proposed overhaul would split the business into two distinct entities. BrazilCo would take ownership of the group's power plants and terminals in Brazil, while the remaining liquefied natural gas operations would be housed under a newly created vehicle dubbed "New NFE." Creditors would receive the vast majority of equity in the restructured company, with existing shareholders hanging on to just 35% of the new entity.

The debt load would shrink from $5.7 billion to approximately $527.5 million — a reduction of more than 90%. That dramatic deleveraging has won broad backing from lenders, with roughly 97% of creditors by value already signaling their support for the plan. The company is targeting a final close of the transaction by the third quarter of 2026.

The financial distress comes into sharp focus with the fourth-quarter 2025 results, which showed a net loss of $789 million on revenue of $404 million. Over the trailing twelve months, the gross margin stood at 24.1%. The company also acknowledged material weaknesses in its internal controls over financial reporting, having already corrected errors from prior periods. It remains unclear when those deficiencies will be fully remediated.

BlackRock holds a passive stake of roughly 4% in the company, while Rubric Capital Management owns approximately 24.3 million shares, representing an 8.5% interest. There are 285.6 million Class A shares outstanding.

The restructuring plan requires formal approval from creditor meetings, which the London court must authorize in May. Any setback in the legal process would immediately worsen the company's liquidity position. In the meantime, New Fortress Energy needs its Brazilian and Mexican facilities to keep operating without disruption to maintain cash flow through the restructuring period.