New Fortress Energy Warns of Possible Bankruptcy as Debt Pressures Mount

NFE -17.12% NG=F +2.37%

Shares of billionaire Wes Edens’ New Fortress Energy Inc. plunged on Friday after the liquefied natural gas (LNG) firm warned that it may file for bankruptcy protection in the U.S. if it cannot reach an out-of-court restructuring deal with creditors. The New York-based company said in a regulatory filing that it’s also considering a court-supervised restructuring in the U.K., underscoring the severity of its financial strain.

New Fortress, which supplies natural gas across the Caribbean and Latin America, has been battling shrinking revenues and rising debt burdens for months. The company reported $8 billion in liabilities against only $1.3 billion in assets, admitting “substantial doubt” about its ability to continue operating without fresh liquidity. Shares fell as much as 27% in intraday trading, extending a year-long slide of more than 80%.

The firm has been scrambling to buy time with creditors, most recently securing a short-term reprieve to delay interest payments on its 2029 senior-secured notes until mid-December. Bloomberg previously reported that management had explored both U.S. Chapter 11 protection and U.K. restructuring mechanisms as options to preserve value while renegotiating debt.

Founded by Edens to capitalize on LNG demand in emerging markets, New Fortress Energy expanded rapidly through acquisitions and project financing but has since faced liquidity pressures amid volatile gas prices and delayed project cash flows. Analysts warn that unless a comprehensive refinancing deal materializes soon, the company could face court-supervised restructuring before year-end.

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