New Fortress Energy Considers UK Debt Restructuring to Avoid Chapter 11 Bankruptcy

New Fortress Energy is considering restructuring its UK operations through a scheme of arrangement to avoid filing for Chapter 11 bankruptcy, a move that could reshape its business strategy and stabilize its finances amid significant financial pressures. The UK restructuring process is viewed as potentially less costly and less detrimental to contracts compared to a U.S. bankruptcy filing. Despite this effort, the company continues to face challenges including high debt levels, poor financial health indicators, and ongoing risks related to liquidity and contract performance, especially with its large secured notes trading at a steep discount. The restructuring may ease immediate bankruptcy fears but does not fundamentally change key risks or the critical need to maintain operational execution, particularly in markets like Puerto Rico where long-term LNG supply deals support revenue visibility. Investor sentiment remains cautious due to the company's negative profitability metrics and the uncertainty surrounding the successful execution of its growth plans. Overall, while the restructuring offers a potential avenue for stabilizing New Fortress Energy, significant execution risks and financial vulnerabilities remain.