New Fortress Energy Cuts Debt to $700M Without Filing Chapter 11

New Fortress Energy’s restructuring took effect September 11, 2026, cutting funded debt from $5.7 billion to roughly $700 million under a UK Restructuring Plan the Southern District of New York had already recognized under Chapter 15, not a domestic Chapter 11 case.

Why it matters: New Fortress’s restructuring left trade payables untouched, so suppliers should confirm which reorganized entity now holds their contract.

How New Fortress erased $5.7 billion without filing Chapter 11

New Fortress routed its balance-sheet overhaul through England’s Restructuring Plan process under Part 26A of the Companies Act, then brought it to the U.S. for recognition rather than filing a domestic Chapter 11 case.

• U.S. Bankruptcy Judge Martin Glenn recognized the plan under Chapter 15 on June 26, 2026, in case No. 26-11268, after the English High Court sanctioned it on June 18, 2026.
• Six of seven creditor classes voted unanimously to approve the plan, and the seventh class still cleared it with 99.84% support.
• A Kirkland & Ellis analysis of Judge Glenn’s opinion describes the restructuring’s scope as “confined to financial debt,” a strong signal that ordinary trade payables sat outside the plan.

Who owns New Fortress now, and why it matters to counterparties

The restructuring, effective September 11, 2026, split New Fortress into two separate companies and handed most of the equity to former bondholders.

• New Fortress separated its Brazilian assets into a standalone company called BrazilCo, while its LNG infrastructure and 735-megawatt power portfolio in Mexico and Puerto Rico continue under a reorganized “New NFE.”
• Former noteholders received 65% of New NFE’s common equity, preferred stock carrying a $2.45 billion liquidation preference, and about $571.3 million in new term loans in place of a cash recovery.
• New Fortress diluted legacy shareholders to 35% of New NFE’s common stock and carried out a 1-for-50 reverse stock split when trading resumed.
• New Fortress is now the third Nasdaq-listed company to pair an English Restructuring Plan with Chapter 15 recognition, a route more U.S. issuers are testing as an alternative to Chapter 11.

What to do now

Suppliers and lenders with exposure to New Fortress have a few specific things to check before extending more credit, the same diligence that mattered when QVC Group exited Chapter 11 with trade vendors paid in full.

1. Verify whether your existing contract or purchase order now sits with New NFE or BrazilCo, since the restructuring created two separate legal entities on September 11, 2026.
2. Request updated financial statements from your New Fortress counterparty now that the reorganized company carries roughly $700 million in corporate debt instead of $5.7 billion.
3. Review your trade credit insurance policy’s notification requirements before extending new credit terms to a restructured account, since coverage is subject to credit limits, notification requirements, and policy terms in place at the time of loss.
4. Contact Securitas Global Risk Solutions to confirm how your policy treats a counterparty that reorganized through a foreign court process rather than U.S. Chapter 11.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.