New Fortress Energy fails to file Nasdaq report amid fiscal challenges

By The Star Staff

New Fortress Energy (NFE), the parent company of Genera PR, the operator of the local utility’s power plants, was recently served with a non-compliance notice by Nasdaq after the company failed to file its 10-Q form for the first quarter of 2025 on time.

The move follows a tumultuous period for the energy firm, which has faced significant financial challenges in recent months.

The latest notification has prompted a group of noteholders from New Fortress Energy, the parent company of Genera PR, the private operator of the local energy utility’s power plants, to hire the law firm Paul Weiss for what may be a refinancing.

Paul, Weiss previously advised an ad hoc group of New Fortress Energy Inc. noteholders as the liquefied natural gas company completed two debt and equity transactions totaling $2.7 billion.

That transaction was a private exchange of $1.5 billion of new senior secured notes due 2029 for more than two thirds of each of New Fortress Energy’s outstanding senior secured notes maturing in 2026 and 2029. This followed the funding of $1.2 billion of new senior secured notes due 2029, completed on November 26. The $2.7 billion of new senior secured notes will trade as a single class.

However, the company has continued to struggle, and last week, it received a notice from Nasdaq due to the delayed filing of its 10-Q form for the quarter ending March 31, 2025.

New Fortress Energy recently conducted a $1 billion asset sale in Jamaica, with the proceeds expected to pay down existing debt. Nevertheless, the company’s recent financial performance has raised concerns among investors, with its capital structure suffering following a steep decline in earnings and the suspension of its first lien leverage and fixed charge coverage tests for the second quarter of 2025.

Despite these challenges, New Fortress Energy has stated that it is working diligently to finalize the 10-Q form and plans to file it as soon as possible. However, the Nasdaq notice has only added to the mounting pressure on the company. The 10-Q is a quarterly report that public companies file with the Securities Exchange Commission, containing financial statements and other information about their performance for the first three quarters of the fiscal year.