New Fortress Energy Inc. extended the deadline for the interest payment on its $2.7 billion 2029 senior secured notes from December 15, 2025 to January 9, 2026, giving the company an additional 25 days to secure financing or restructure its debt obligations.
The extension comes amid a liquidity crisis that has left the company with a long‑term debt load of roughly $13.9 billion and a current ratio of 0.17. Over the past year the company posted a net loss of $1.3 billion and diluted earnings per share of –$4.86, while revenue fell 26.5 % year‑over‑year. In the most recent quarter the loss narrowed to $557 million from $197 million in the prior quarter, but the company still faces a high probability of bankruptcy if it cannot secure new funding.
The root of the cash crunch is the company’s failure to lock in long‑term LNG supply contracts for its Latin American operations, forcing it to purchase gas on the spot market at higher prices. Delays in key projects have further eroded cash flow, and the company’s debt covenant structure exposes it to cross‑default risk if the interest payment is not made on time.
Investors reacted positively to the extension, citing the additional breathing room and the recent approval of a $3.18 billion LNG supply agreement with Puerto Rico as key tailwinds. Analysts noted that the deal provides a stable revenue stream that could help the company meet its debt obligations and reduce refinancing risk.
The forbearance extension is a short‑term stopgap; management has indicated that it will continue to negotiate a comprehensive restructuring, potentially through a U.K. scheme of arrangement, to avoid a Chapter 11 filing. The company’s high Altman Z‑Score of –0.59 to –0.74 underscores the urgency of these efforts and signals that the extension is a critical, but temporary, measure to preserve operations.
The event underscores the company’s precarious financial position and the importance of securing long‑term contracts and refinancing to avoid default. The extension provides a narrow window for the company to stabilize its cash flow and negotiate a more permanent solution.
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