New Fortress Energy Inc. (NASDAQ: NFE) announced it has entered into a Restructuring Support Agreement with creditors as part of a consensual UK Restructuring Plan, according to a company press release.

The transaction will split NFE into two separate entities. BrazilCo will become a privately held company owned by creditors, comprising NFE's terminals, power plants, and operations in Brazil. New NFE will remain publicly traded as an integrated LNG-to-power company containing all other NFE assets and operations.

Under the agreement, creditors will exchange debt instruments for a combination of New NFE debt, preferred equity, and common shares. The restructuring will reduce New NFE's corporate debt from approximately $5.7 billion to approximately $527.5 million.

The deal includes the issuance of up to $2.5 billion of New NFE preferred equity and 65% of New NFE common equity to creditors. The preferred equity carries a three-year term with payment-in-kind coupons of 3% in year one, 5% in year two, and 7% in year three.

Existing NFE shareholders will see their ownership diluted to 35% of New NFE common equity, with potential for further dilution if preferred equity converts to common stock at the end of year three.

"This consensual restructuring represents a landmark milestone for the company," said Wes Edens, Chairman and CEO of New Fortress Energy.

The company plans to launch the UK RP process in April, with court hearings to follow. The transaction is expected to close by the third quarter of 2026, subject to court availability, customary conditions and regulatory approvals.

Eligible creditors who agree to the restructuring support agreement by March 31, 2026, will receive an early consent fee equal to 0.75% of their eligible debt principal amount.