2025.11.22 – New Fortress Energy: Under Strain, Still Out of Court

Key Takeaways

Status today. New Fortress Energy has not filed for bankruptcy.
Pressure points. A missed interest payment triggered credit downgrades and a “Restricted Default” label from Fitch.
Debt lifeline. An amended letter-of-credit facility extends maturity to March 2026 and relaxes certain covenants.
Disclosure delays. The company asked for extra time to file its quarterly report while restructuring talks continue.

Story & Details

Where things stand. The U.S. liquefied natural gas company remains a going concern, yet it sits in the uncomfortable space between forbearance and formal court protection. Reporting shows heavy leverage, project execution issues, and expensive financing weighing on results. A recent quarterly loss underscored the strain as interest costs compound the problem [1].

What changed in the capital stack. On November 14, the firm executed an Eleventh Amendment to its letter-of-credit and reimbursement agreement. The move extends the maturity to March 31, 2026, grants a short covenant holiday, removes a minimum liquidity test for select quarters, tightens dividends and other payouts, and restricts payments on certain outstanding debt—specifically touching the November interest due on 12% senior secured notes due 2029 [2][3]. This buys time, not safety.

Signals from the ratings desk. After the missed mid-November interest payment, Fitch cut the issuer rating to “RD,” a designation used when a default on a specific obligation has occurred or is imminent. The action also pushed certain secured instruments deeper into distress territory, highlighting limited room for error as negotiations unfold [4]. S&P Global echoed the moment with its own downgrade to “SD” (selective default) on the notes in question [5].

Disclosure clock. As talks with lenders intensified, the company sought an extension for its third-quarter filing. Reuters reporting notes long-term debt in the multi-billion-dollar range and points to ongoing efforts to sell assets or bring in partners to stabilize liquidity and reduce risk [3][1]. None of this equals a court petition, but each step sketches the contours of a restructuring playbook.

Conclusions

New Fortress Energy is navigating a narrow channel. Covenant relief and maturity breathing room help; missed coupons and rating downgrades hurt. Unless out-of-court talks quickly yield binding agreements, a court-supervised process remains a live option. For now, the company stays out of court, and the next decisive signals will come from filings, forbearance updates, and creditor lock-ups.

Sources

[1] Reuters — “New Fortress posts quarterly loss as high interest costs deepen debt woes” (Nov. 21, 2025): https://www.reuters.com/business/energy/new-fortress-posts-quarterly-loss-high-interest-costs-deepen-debt-woes-2025-11-21/
[2] SEC — New Fortress Energy Form 8-K (filed Nov. 14, 2025): https://www.sec.gov/Archives/edgar/data/1749723/000174972325000145/nfe-20251114.htm
[3] Reuters — “New Fortress Energy seeks to delay quarterly filing amid debt restructuring talks” (Nov. 12, 2025): https://www.reuters.com/business/energy/new-fortress-energy-seeks-delay-quarterly-filing-amid-debt-restructuring-talks-2025-11-12/
[4] Fitch Ratings — “Fitch Downgrades New Fortress Energy’s IDR to ‘RD’ on Missed Interest Payment” (Nov. 20, 2025): https://www.fitchratings.com/research/corporate-finance/fitch-downgrades-new-fortress-energy-idr-to-rd-on-missed-interest-payment-20-11-2025
[5] S&P Global Ratings — “New Fortress Energy Inc. Downgraded To ‘SD’” (Nov. 18, 2025): https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3480829
[6] United States Courts — “Bankruptcy Basics — Part 2: Types of Bankruptcy” (YouTube, institutional channel): https://www.youtube.com/watch?v=DXv-na6y8nE

Appendix

Bankruptcy. A court process that lets a debtor restructure or liquidate obligations under judicial oversight.

Chapter 11. A U.S. reorganization path that allows a company to keep operating while it negotiates a plan with creditors.

Covenant holiday. A temporary pause or loosening of financial tests in a credit agreement to avoid technical default.

Forbearance. An agreement in which creditors temporarily refrain from enforcing rights after a default or missed payment.

Issuer ratings (RD/SD). “Restricted Default” (Fitch) and “Selective Default” (S&P) indicate default on specific obligations while other debts may still be paid.

Letter-of-credit facility. A bank-backed arrangement that supports obligations; amending terms can extend maturities and adjust covenants.

Liquidity. Cash and committed credit available to meet near-term needs without selling core assets at a loss.

Senior secured notes. Bonds backed by collateral and priority claims; missing an interest payment can trigger downgrades and negotiations.