New Fortress Energy: Existing Shareholders Draw Short Straw Under U.K. Restructuring Plan

Eborose Capital1.17K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryShareholders face significant dilution under NFE's Restructuring Support Agreement.Recent landmark UK court decisions have challenged the effectiveness and appeal of the Restructuring Plan as a restructuring tool. NFE's plan will provide another test.There is a significant amount of uncertainty concerning whether NFE can deliver on its post-restructuring forecasts. Olga Kostrova /iStock via Getty Images New Fortress Energy Inc. (NASDAQ:NFE) announced a substantial Restructuring Support Agreement that will vary creditor claims with a debt-for-equity swap, subsequently deleveraging its balance sheet through a Restructuring Plan (RP) under part 26A ofThis article was written byEborose Capital1.17K FollowersFollowI work in Restructuring Advisory in London and write about businesses that interest me here on Seeking Alpha. The companies that I work with are generally facing some form of distress. I then work with these busineses to implement Restructuring solutions including solvent actions like debt refinancing's to insolvent solutions including administrations under the UK Insolvency Act.My work within the Restructuring space primarily focuses on smaller businesses, therefore most of my coverage on here will be on mid-cap equities or those experiencing distress.If you want to reach out, whether that's to ask me any questions or just to connect, feel free to message me here on Seeking Alpha.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.