New Fortress Energy Reaches Agreement With Lenders to Cut $5.2 Billion in Debt in Landmark UK Restructuring Deal

Paul, Weiss advised a group of New Fortress Energy Inc. bondholders with respect to a restructuring support agreement that will restructure approximately $5.7 billion in debt as part of what’s expected to be one of the largest consensual UK restructuring plan transactions ever completed. NFE is a global energy infrastructure company that owns and operates natural gas and liquefied natural gas infrastructure, as well as an integrated fleet of ships and logistics assets.

Under the agreement NFE will separate into two independent entities: a private standalone creditor-owned company comprising NFE’s Brazil assets, and “New NFE,” a public LNG-to-power company holding NFE’s remaining assets. The creditor groups will exchange their debt for a combination of New NFE debt, preferred equity and common shares, thereby reducing New NFE debt from about $5.7 billion to $527.5 million and resulting in the issuance of up to $2.5 billion of New NFE preferred equity and 65% of New NFE common equity. NFE is expected to launch the UK restructuring process in April, and the transaction is expected to close by the third quarter of 2026, subject to customary closing conditions. The group of bondholders advised by Paul, Weiss will receive substantially all of the voting and economic equity of the new standalone Brazilian company, which would be one of the most prominent LNG supply and infrastructure businesses in Brazil.

The Paul, Weiss team includes restructuring and debt capital solutions partners Sung Pak, Andrew Rosenberg, Lauren Bilzin, Nick Charlwood, Liz Osborne and Kyle Satterfield; corporate partners Raphael Russo and Jamie Franklin; tax partners Matthew Jordan and Cian O’Connor; litigation partners Alison Benedon, William Clareman and Nicole Succar; antitrust partners Nicole Kar and Lauren O'Brien; and real estate partner Ida Nowaid.