Nasdaq issues a warning to New Fortress Energy for non-compliance

New Fortress Energy, a U.S.-based LNG company, said on Tuesday that it had received a notice from Nasdaq regarding non-compliance to the listing rule of the stock exchange for failing to submit its quarterly reports at the U.S. Securities and Exchange Commission.

The company announced earlier this month that it would extend the deadline for its quarterly filing to the U.S. Securities regulator because of a delay in the sale of the business in Jamaica, which was previously announced, and due to the resignation of the accounting chief.

The company will have 60 days to submit its compliance plan from the date it receives the notice, but expects to file the Form 10-Q way ahead of the Nasdaq's deadline.

The company started exploring options last year such as bringing strategic partners in or selling assets, after deferring dividends for shareholders to preserve cash. It also worked out a deal to delay maturities with bondholders.

The company's financial problems stem from the fact that it is unable to secure long-term LNG contracts for its power generation assets in Latin America because its credit rating is not investment grade, which forces the company to purchase the gas at higher rates.

In May, New Fortress announced a loss for the quarter due to a weak performance in all segments. It also completed its sale of Jamaica assets to Excelerate Energy worth $1.06 billion. (Reporting and editing by Vijay Kishore in Bengaluru. Pooja menon is based in Bengaluru.

(source: Reuters)