New Fortress Energy Asks for Extended Deadline Amid Debt Restructuring Efforts

New Fortress Energy Inc. is seeking an extension from creditors to restructure its debt as the company faces a looming deadline. The firm is in negotiations with its lenders to extend the forbearance period on some of its borrowings, which expires on January 9, 2026. The delay in restructuring comes after the company missed several interest payments, triggering discussions with creditors.

The company entered into a forbearance agreement with its lenders late last year after missing a $30.6 million interest payment on its term loan B facility. It also informed lenders it would miss other scheduled payments. The failure to meet these obligations has raised concerns about the company's ability to restructure without defaulting.

New Fortress has total debt of $8.9 billion, with $6.6 billion classified as a current portion of long-term debt. The company's financial struggles have been compounded by project delays and reduced cash flow, which have strained its liquidity. Creditors are now weighing the possibility of accelerating principal repayments if an agreement is not reached.

Why Did This Happen?

New Fortress Energy has been struggling with liquidity issues for months. The company has missed several payments on its secured debt, including a November interest payment on its $2.7 billion of 12% secured notes. These missed payments have led to a sharp decline in the bond's market value, with the notes trading at nearly 28 cents on the dollar as of January 7, 2026.

The company's term loan B maturing in 2028 was quoted at around 41 cents on the dollar, reflecting the high level of risk associated with its debt. This devaluation of its debt instruments signals investor concerns over its ability to meet its obligations.

How Are Creditors Responding?

Multiple groups of creditors have formed, with some engaging law firms such as Evercore Inc. and Akin Gump Strauss Hauer & Feld. Other creditor groups are receiving advice from Perella Weinberg Partners and Paul Weiss Rifkind Wharton & Garrison. These groups are working to negotiate a restructuring that would allow the company to remain solvent.

New Fortress Energy has not publicly commented on the matter, with representatives from the company and its financial adviser Houlihan Lokey Inc. declining to speak. However, the ongoing negotiations suggest that a restructuring is likely, though the final terms remain unclear.

What Are Investors Watching Next?

Investors are closely monitoring the situation as the company's debt profile remains under pressure. If New Fortress is unable to secure an extension, debt holders have the right to accelerate payments, which could push the firm into bankruptcy. This would mean the entire $8.9 billion debt load would become immediately due, a scenario that could trigger a financial collapse.

The company's struggles are not unique. Similar scenarios have unfolded elsewhere, such as in Ghana, where bondholders recently reached a restructuring deal for a defaulted 2026 dollar bond. That deal involved swapping bonds into new sovereign instruments and provided a 20% haircut to investors.

The broader market is also reacting to corporate debt risks, with Italy seeing strong demand in its 2026 bond sale. The country's bond yield premium over German debt has fallen to its lowest since 2008, reflecting improved investor confidence in its fiscal management.

New Fortress Energy's restructuring efforts highlight the challenges faced by firms with high debt loads and liquidity constraints. The outcome of these negotiations will be closely watched by creditors and investors alike, as it could set a precedent for similar cases in the energy sector.