New Fortress Energy: Moving Closer To Bankruptcy - Sell

(9min)

Summary

  • Over the past month, things have only gotten worse for New Fortress Energy with a number of setbacks suffered in Puerto Rico, NFE's largest market.
  • In addition, the company has violated debt covenants and is not in compliance with Nasdaq listing requirements.
  • In recent weeks, major credit rating agencies have downgraded the company's debt, with a default now considered to be highly likely.
  • Reportedly, creditors have started to organize and already retained legal counsel, with the next step likely the negotiation of a restructuring support agreement.
  • Given the high likelihood of a total loss, investors should consider selling existing positions and moving on.
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »
LNG (Liquefied natural gas) tanker anchored in Gas terminal gas tanks for storage. Oil Crude Gas Tanker Ship. LPG at Tanker Bay Petroleum Chemical or Methane freighter export import transportation

Suphanat Khumsap

Note:

I have covered New Fortress Energy Inc. or "NFE" (NASDAQ:NFE) previously, so investors should view this as an update to my earlier articles on the company.

Over the past month, things have continued to move in the wrong direction for

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This article was written by

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

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