Genera PR parent firm New Fortress restructures its debt.

The New Fortress Energy Inc. chairman & CEO said the newly structured business will be “capital-light” with low leverage and strong free cash flow, supported by long-term supply and demand agreements. (Facebook via New Fortress Energy)

By THE STAR STAFF

New Fortress Energy Inc. (NFE), the parent company of Genera PR, has announced that it has entered into a restructuring support agreement with its creditors as part of a consensual U.K. Restructuring Plan, a process expected to result in one of the largest transactions of its kind completed under the UK RP framework. 

The plan calls for creditors to exchange existing NFE debt for a combination of new debt, preferred equity, and common shares. Closing is anticipated by the third quarter of 2026, subject to court availability, regulatory approvals and other customary conditions.

As part of the agreement, NFE will separate into two independent companies. The first, known as “BrazilCo,” will be a privately held entity owned by creditors and will include the company’s terminals, power plants, and Brazilian operations. The second, called “New NFE,” will remain publicly traded and will encompass all other assets and operations of the original company, forming an integrated liquefied natural gas(LNG)‑to‑power business. Genera PR, the private operator of the Puerto Rico Electric Power Authority legacy power plants, will be part of the new NFE.  

Through the restructuring, New NFE will reduce its corporate debt from some $5.7 billion to $527.5 million. In exchange for their existing debt instruments, creditor groups will receive new debt along with preferred and common equity in the restructured company. Up to $2.5 billion in preferred equity will be issued, carrying a payment‑in‑kind coupon of 3% in the first year, 5% in the second, and 7% in the third. The preferred equity can be prepaid at any time without penalty. If any portion remains outstanding after three years, it will automatically convert into its pro rata share of 87% of New NFE common equity.

Existing NFE shareholders will retain 35% of the common equity of New NFE, although their stake may be further diluted if preferred equity converts at the end of the three‑year period.

NFE Chairman & CEO Wes Edens called the restructuring a “landmark milestone” for the company. He said the newly structured business will be “capital-light” with low leverage and strong free cash flow, supported by long-term supply and demand agreements.

“This simple business model positions ‘New NFE’ for robust growth and stability ahead with very little additional capital required,” Edens said, while thanking creditors, advisers, customers and shareholders for their support.

The company plans to formally initiate the UK RP process in April, with court hearings to review and sanction the plan to follow.