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New Fortress Energy asks SEC for extension on filing quarterly report in debt agreement talks

New Fortress Energy announced on Tuesday that it had requested more time to file its second quarter report, ending June 30. The company cited ongoing discussions about additional credit support needed under one of its loan agreements.

The shares of the U.S. based company that produces liquefied gas fell nearly 5% at first trading.

New Fortress stated in a filing to the U.S. Securities and Exchange Commission that the timing of the resolution of the discussions was uncertain and could have an impact on how the long-term debt and disclosures related to it are presented.

It is also necessary to give the auditor more time to finish reviewing and complete the procedures for interim financial reports.

New Fortress made a similar statement in May, stating that it would extend the first quarter filing to the SEC because of delays in the completion of a previously-announced sale of the company's business in Jamaica as well as the resignation of the accounting chief.

At the end of first quarter, it had debts worth $8.9billion.

Its financial problems stem from the inability of the company to obtain LNG on long-term contracts for its power generation assets in Latin America because its credit rating was not investment-grade. The gas had to be purchased at higher prices. (Reporting and editing by Shilpa Majumdar in Bengaluru)

(source: Reuters)