Paul Hastings Advises Bondholders of New Fortress Energy on Restructuring Plan

Paul Hastings advised a group of New Fortress Energy's (NFE’s) 2026 and 2029 legacy bondholders in connection with NFE's restructuring by way of two Part 26A restructuring plans (the RPs).NFE is a U.S.-listed global energy infrastructure group focused on LNG infrastructure and power projects. Following a 2024 liability management exercise, NFE faced continued operational challenges and a deteriorating liquidity position. By late 2025, the group had insufficient liquidity to meet interest payment obligations across its debt instruments, which ultimately led to the execution in March 2026 of a Restructuring Support Agreement supported by approximately 97% of creditors by value.The RPs were sanctioned on June 19, 2026, at a hearing in the High Court of Justice of England and Wales before Mr. Justice Cawson, with plan creditors showing overwhelming support: Six of the seven classes voted unanimously in favor and the seventh class voted 99.84% in favor.The transaction has a number of notable features:It restructures over $9 billion of debt, representing what is believed to be the largest consensual restructuring implemented through a Part 26A process to date.It involves the formal separation of NFE's Brazilian operations from its wider business, with ownership of each business transferring to the relevant creditors.It demonstrates the continued attractiveness of the U.K. Part 26A regime for complex cross-border situations. NFE and its creditors elected to implement the restructuring in the English courts notwithstanding that the majority of the group's operations are in the U.S., Latin America and Brazil.It is the third example of where Part 26A is compatible with NASDAQ’s continued listing requirements (following the RPs for Fossil Group and Argo Blockchain). As predicted, the Part 26A regime has opened up a path for Nasdaq-listed entities to restructure without the risks to listed status caused by alternative, U.S. bankruptcy processes.A hearing before the U.S. Bankruptcy Court for the Southern District of New York to confirm Chapter 15 recognition is scheduled for June 26, 2026, with implementation of the transactions expected in the third quarter of 2026, subject to the satisfaction of certain conditions, Chapter 15 recognition and regulatory approvals.Partner Sayan Bhattacharyya and Financial Restructuring Group co-chair Kris Hansen led the Paul Hastings team, which also included partner Helena Potts and associates Matt Friedrick, Amrit Khosa and Schlea Masanz.About Paul HastingsWith widely recognized elite teams across 17 core practices, Paul Hastings is a premier law firm with a culture of excellence focused on providing intellectual capital and superior execution globally to the world’s leading investment banks, asset managers and corporations.Associated Professionals: Sayan Bhattacharyya Kris Hansen Helena Potts Matt Friedrick Amrit Khosa Schlea Masanz