• The energy company, which operates across several countries, including the UK, has faced mounting financial strain amid delayed projects that have weakened cash flow.
• According to the report, the company's $2.7 billion of 12% secured notes maturing in 2029 traded at nearly 22 cents on the dollar last week, compared with 94 cents in late March.
• New Fortress Energy is exploring a potential debt restructuring through a UK court process known as a scheme of arrangement.

New Fortress Energy Inc. (NFE) stock slid 2.7% in extended trading on Monday after a report that the liquefied natural gas firm is in talks with creditors over a forbearance agreement amid its struggle to pay interest due on some of its debt.

According to a Bloomberg News report, citing people familiar with the matter, the firm is seeking a reprieve on interest payments on some of its borrowings. The agreement would give it more time to form a restructuring plan with creditors.

Problems Grow For New Fortress

The energy company, which operates across several countries, including the UK, has faced mounting financial strain amid delayed projects that have weakened cash flow and burdened its balance sheet. Much of the firm's existing problems stem from its weak credit rating, which has hampered its ability to secure LNG for its assets in Latin America.

According to the report, the company's $2.7 billion of 12% secured notes maturing in 2029 traded at nearly 22 cents on the dollar last week, compared with 94 cents in late March. The firm's $1.27 billion term loan maturing in 2028 was reportedly quoted at around 44.6 cents on Monday.

A group of New Fortress debt holders has engaged Evercore Inc. and Akin Gump Strauss Hauer & Feld, while other creditors are receiving advice from Perella Weinberg Partners and Paul Weiss Rifkind Wharton & Garrison, as per the report. Law firm Paul Hastings has reportedly been working with a group holding its 6.5% secured bonds due in 2026 and its 8.75% bonds maturing in March 2029.

Debt Restructuring In The Works

New Fortress Energy is exploring a potential debt restructuring through a UK court process known as a scheme of arrangement, Bloomberg News reported earlier. The option is a less costly and disruptive alternative to a U.S. Chapter 11 bankruptcy, potentially allowing the company to preserve contract relationships and retain some shareholder value.

Last week, the company delayed the release of its third-quarter results to focus on debt restructuring.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about New Fortress was in the 'bearish' territory at the time of writing, compared with 'neutral' a day ago.

“No board wants their stock to hit below S1. Energy is better bet than AI at the moment,” one trader said.

New Fortress stock has slumped nearly 93% this year.

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