New Fortress Energy Inc. entered into a forbearance agreement with holders of its 12% senior secured notes due 2029 on November 18, 2025. The agreement postpones the interest payment that was originally due on November 17, 2025, to December 15, 2025, giving the company an additional month to meet the obligation. The notes total $1.2 billion in principal and carry a 12% coupon, so the forbearance delays a $144 million interest expense that would have been paid in the first week of December.
The forbearance is a response to a severe liquidity squeeze. New Fortress Energy’s current ratio fell to 0.67, and the company posted a net loss of $557 million in the second quarter of 2025. Negative free cash flow of $1.89 billion over the last twelve months further underscores the strain. By deferring the interest payment, the company preserves cash that can be directed toward debt‑refinancing and other liquidity‑enhancing initiatives.
The event triggered a downgrade by S&P Global Ratings to selective default (SD) for the issuer and to D for the 12% senior secured notes, reflecting the company’s failure to meet its contractual interest obligation on time. The downgrade signals that the company is in a selective default situation, a status that can limit its ability to secure new financing and may affect the terms of existing debt.
New Fortress Energy has been pursuing a comprehensive restructuring program since October 2024, which included a $3 billion debt‑and‑equity transaction that extended maturities and issued new senior secured notes due 2029. The company also sold its Jamaican operations for $1.055 billion in May 2025 to reduce debt. Despite these measures, the forbearance indicates that liquidity challenges persist and that the company remains in a “going‑concern” situation.
Management emphasized that the forbearance is part of a broader strategy to simplify the capital structure and address ongoing going‑concern concerns. The agreement provides a temporary reprieve while the company continues to negotiate refinancing terms and pursue asset‑level financing plans.
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