Billionaire Wes Edens Sees Glimmer of Hope for Debt-Ridden New Fortress Energy Amid White House Shake-Up in Puerto Rico

Billionaire Wes Edens' New Fortress Energy is in a debt crisis and facing a battle with Puerto Rico's oversight board over a $20 billion deal to supply the US territory with liquefied natural gas. The White House recently fired all but two members of the board, potentially paving the way for a deal with New Fortress. The company's shares jumped 16% after the firing, and Edens' net worth dropped to $1.9 billion.

New Fortress Energy (NASDAQ:NFE) saw its shares rise by 16% on Tuesday following the White House's decision to fire five members of the seven-member Financial Oversight and Management Board (FOMB) that oversees Puerto Rico's finances. The move, announced on Friday, has sparked concerns about the board's ability to manage the island's complex financial restructuring and debt negotiations [1].

The FOMB, established under the Obama administration in 2016, is currently engaged in high-stakes negotiations to reduce the debt obligations of the Puerto Rico Electric Power Authority (PREPA) from $10 billion to $2.6 billion. The board has saved Puerto Rico's taxpayers $55 billion in creditor payments over the past 40 years, but it has come under fire from Trump confidant Laura Loomer, who has criticized the board's spending on bankruptcy lawyers and restructuring advisers, estimating it to be over $2 billion in the past decade [1].

The termination of five board members, including Chairman Arthur Gonzalez, Cameron McKenzie, Betty Rosa, Juan Sabater, and Luis Ubiñas, has been attributed to the board's salaries and decisions, according to emails viewed by Bloomberg [1]. The remaining members, Andrew Biggs and John Nixon, were not affected by the terminations.

The board's actions have also slowed the local government's plans to sign a multi-billion dollar liquefied natural gas delivery contract with New Fortress Energy, which saw its shares surge by 16% on Tuesday following the news of the firings [2]. Puerto Rico's energy sector, with some of the highest priced and least reliable energy in the U.S., is seen as a key factor in the island's financial viability.

Critics argue that the unelected board's lengthy bankruptcy negotiations and high costs are hindering the island's economic recovery. The White House's decision to replace several board members has raised questions about the future of Puerto Rico's financial restructuring process.

The firing of the board members has potentially paved the way for a deal with New Fortress Energy, which is facing a debt crisis and is in a battle with the oversight board over a $20 billion deal to supply the US territory with liquefied natural gas. The company's shares jumped 16% after the firing, and billionaire Wes Edens' net worth dropped to $1.9 billion [2].

References:
[1] https://www.ainvest.com/news/fortress-energy-surges-trump-administration-fires-puerto-rico-oversight-board-members-2508/
[2] https://seekingalpha.com/news/4479361-new-fortress-rises-as-trump-administration-fires-most-of-puerto-rico-oversight-board