New Fortress Energy Surges as Trump Administration Fires Puerto Rico Oversight Board Members.

New Fortress Energy shares rose 9.3% after the Trump administration fired five members of the Puerto Rico oversight board, which is dealing with debt and financial issues. The firings sparked concerns about the board's ability to manage the island's finances effectively.

The Trump administration has fired 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.

The board, 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 (NASDAQ:NFE), which saw its shares surge by 9.3% 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.

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/white-house-fires-most-of-puerto-ricos-oversight-board-members
[2] https://seekingalpha.com/news/4479361-new-fortress-rises-as-trump-administration-fires-most-of-puerto-rico-oversight-board