New Fortress Energy’s (NFE) restructuring marks a significant milestone in the growing use of English restructuring plans as an alternative to US Chapter 11 proceedings. By pursuing an English Part 26A restructuring plan, NFE was able to eliminate approximately US$9.6 billion of debt and complete a broader operational reorganization, with the process later recognized by the US Bankruptcy Court under Chapter 15.
The key factor behind NFE’s decision to restructure in the UK was value maximization. The courts found that the English process was expected to deliver approximately US$1.44 billion more value than a Chapter 11 alternative, making the choice of jurisdiction commercially justified. The case highlights the flexibility of the English restructuring regime, including its ability to deliver efficient restructurings and allocate value in ways that may be more difficult under US bankruptcy rules.
A central feature of the case was the overwhelming creditor support, with approximately 97% of affected liabilities supporting the restructuring, and all creditor classes approving the plans. This consensus was critical in securing approval from both the English High Court and the US court, demonstrating that creditor outcomes and stakeholder support are both becoming increasingly important factors in cross-border restructuring decisions.
The most notable development from NFE is the courts’ acceptance of “good forum shopping.” Rather than viewing jurisdiction selection negatively, the courts recognized that choosing a foreign restructuring process can be appropriate where it is designed to maximize creditor value rather than avoid obligations. The decision suggests that US-based companies may increasingly consider English restructuring plans where they can demonstrate better recoveries, strong creditor support and a clear economic advantage over Chapter 11.
NFE reinforces the growing role of English restructuring plans as a credible alternative to Chapter 11, and signals a more flexible approach by courts on both sides of the Atlantic toward cross-border restructuring strategies.
