New Fortress Energy (NFE) signed a restructuring support agreement with creditors under a UK plan that will cut its debt to $527.5 million from $5.7 billion and split the company into two entities.

Under the plan, creditors will exchange existing debt for a mix of new debt, preferred equity and common shares, including up to $2.5 billion in preferred equity and a 65% stake in "New NFE," New Fortress Energy said Tuesday in a statement.

The deal will split the business into a creditor-owned private "BrazilCo" holding its Brazilian assets, and a publicly traded "New NFE" retaining the company's remaining global operations.

New Fortress expects to begin the UK restructuring process in April with completion set for Q3.

The company's share rose 25% in Tuesday trading.

Price: 1.37, Change: +0.28, Percent Change: +25.23