- New Fortress Energy is reportedly considering a UK-based debt restructuring plan as an alternative to a US Chapter 11 bankruptcy.
- The process, known as a “scheme of arrangement,” is often cheaper and less disruptive to business contracts.
- Sources familiar with the matter emphasize that discussions are ongoing and no final decision has been made.
- This strategic consideration highlights a growing trend of companies seeking more flexible international restructuring options.
New Fortress Energy Explores UK Restructuring to Sidestep Chapter 11
In a significant strategic pivot, Wes Edens’ New Fortress Energy Inc. is actively considering a United Kingdom-based process to restructure its debt, potentially avoiding the complexities and costs of a traditional US Chapter 11 bankruptcy. According to sources close to the private discussions, the company is evaluating a UK “scheme of arrangement” as a more favorable path forward.
The move signals a proactive approach by the energy giant to manage its financial obligations while minimizing operational disruption. While no final decision has been cemented, the exploration of this alternative highlights the company’s search for a less damaging solution to its debt situation.
Why a UK Scheme of Arrangement?
The primary appeal of the UK court procedure lies in its efficiency and reduced impact on business operations. A scheme of arrangement is a court-approved agreement between a company and its creditors to reorganize its debt. For companies like New Fortress, this option presents several key advantages over its American counterpart.
Lower Costs and Less Disruption
Financial experts often cite the UK scheme as being significantly cheaper and faster than a Chapter 11 filing. The US process is notoriously expensive, involving extensive legal fees and administrative costs. Furthermore, Chapter 11 can be highly detrimental to a company’s existing contracts with suppliers, customers, and partners, often leading to renegotiations or cancellations that can harm the business’s core functions.
By pursuing a scheme of arrangement, New Fortress could potentially preserve these vital relationships and maintain business continuity, a crucial factor for a company operating in the complex global energy market.
A Strategic Decision Awaits
The sources, who requested anonymity to discuss the confidential matter, stressed that the company is still in the evaluation phase. The choice between a well-established US bankruptcy process and a more flexible UK alternative is a critical one, with long-term implications for the company’s future stability and growth.
The consideration of an international restructuring process reflects a growing trend among multinational corporations seeking to leverage the most favorable legal frameworks available globally. As New Fortress Energy weighs its options, stakeholders and the wider market will be watching closely to see which path the company ultimately chooses to secure its financial footing.
Image Referance: https://www.bloomberg.com/news/articles/2025-10-28/new-fortress-energy-mulls-uk-restructuring-instead-of-chapter-11