New Fortress Energy Warns of Possible Bankruptcy as Debt Pressures Mount

Core Viewpoint - New Fortress Energy Inc. is facing severe financial distress, warning of potential bankruptcy if it cannot secure an out-of-court restructuring deal with creditors [1][2]. Financial Condition - The company reported liabilities of $8 billion against assets of only $1.3 billion, indicating "substantial doubt" about its ability to continue operations without new liquidity [2][4]. - Shares of New Fortress Energy fell as much as 27% in intraday trading, contributing to a year-long decline of over 80% [2][4]. Restructuring Efforts - New Fortress is attempting to negotiate with creditors and has recently secured a short-term delay on interest payments for its 2029 senior-secured notes until mid-December [3][4]. - The company is considering both U.S. Chapter 11 protection and U.K. restructuring options to preserve value while renegotiating its debt [3][4]. Market Position and Challenges - Founded to capitalize on LNG demand in emerging markets, New Fortress expanded rapidly but is now facing liquidity pressures due to volatile gas prices and delayed project cash flows [4]. - Analysts caution that without a comprehensive refinancing deal soon, the company may face court-supervised restructuring by the end of the year [4].