New Fortress in restructuring talks to give creditors equity

According to a report, New Fortress Energy bondholders under a proposed restructuring support agreement would take control of NFE’s Brazil assets, while term loan lenders would see recoveries through value tied to an FLNG 1 LNG offshore facility in Mexico. The recovery value for its term loan debt would be tied to an LNG terminal in Puerto Rico and other downstream assets. (Facebook via New Fortress Energy)

By THE STAR STAFF

New Fortress Energy (NFE) is working on a proposed restructuring support agreement in which creditors would get preferred equity in a reorganized company, according to a Bloomberg report.

NFE is the parent company of Genera PR, the private operator of the Puerto Rico Electric Power Authority’s legacy power plants. NFE also has a liquefied natural gas (LNG) supply agreement with the Puerto Rico government that is slated to last at least seven years at an estimated cost of about $4 billion.

Under the proposal, bondholders would take control of NFE’s Brazil assets, while term loan lenders would see recoveries through value tied to the FLNG 1 LNG offshore facility in Mexico, according to the report, which also said the recovery value for its term loan debt would be tied to a terminal in Puerto Rico and other downstream assets.

The reorganization plan would be executed in the United Kingdom as NFE seeks to continue operations, and the company’s common shares would not be canceled, although the terms of the deal may change, the report said.

NFE owns and operates natural gas and LNG infrastructure and an integrated fleet of ships and logistics assets to deliver turnkey energy solutions to global markets. Collectively, the company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world, according to its website.